The market, in simple words, can be defined as a place where the buyers and sellers meet each other and transact their business. Classification of markets can be done on various bases like classification according to the area, classification according to time and classification according to competition. The most prominent among this classification is the classification according to competition. According to this markets are classified as perfect competition, monopolistic competition, and monopoly. Perfect competition is a place where there are many buyers and sellers in a market and sellers will sell similar goods at same prices. In a monopoly, there is only a single seller selling the goods in the market and there are no close substitutes for the goods which he sells. Monopolistic competition is a market structure where there are many sellers selling goods which are close substitutes of one another.