Introduction
The heart of every economic theory is some kind of modeling. Models provide a logical and abstract stencil to comprehend a complex phenomenon, and they help the economists in many ways. For example, model makes it possible to isolate logically and sort out complex cycles of cause and effect relations that interact in the economy. The four basic market models are one of the prominent tools in economics. They are; pure competition, monopolistic competition, oligopoly and monopoly. Each of the market models has its own characteristics; depending on the nature of the product and the firm, the company can decide to ...