INDUSTRY STRUCTURE:-

Imperfect competition includes industries in which firms have competitors but do not face so much competition that they are price takers. Types of Imperfectly Competitive Markets Oligopoly o Only a few sellers, each offering a similar or identical product to the others. Monopolistic Competition o Many firms selling products that are similar but not identical. Characteristics of an Oligopoly Market Few sellers offering similar or identical products Interdependent firms Best off cooperating and acting like a monopolist by producing a small quantity of output and charging a price above marginal cost.

Base on above theory the structure of KUMKUM PVT.LTD. is OLIGOPOLY MARKET. Because of the this type of chemical manufacturer are less in the market or many of the buyer and so firm can offering a similar or identical.

NATURE OF DEMAND: And the KUMKUM COTTON PVT. LTD. Produce final products mean Cotton Seed OIL which is customer can directly buy for final use and so the nature of the demand is DIRECT DEMAND for the customer.

PROFIT POTENTIALITY:-

In the KUMKUM COTTON PVT, LTD. which structure are oligopolistic market and there are similar type of many of the firm and so increasing or maintain their profit so firm can deal with the other competitors product price and their own total cost compare to the feature and quantity of the product determine certain level of price standard so firm can easily earn profit. Or if the firm have maintain their profit so cheat the other firm and maximize profit. Assume that the firm can maximize the price of product as compare to the other competitor so firm can earn zero percent profit because buyer should be purchase other seller chemical. If the KUMKUM COTTON PVT, LTD. Should have minimize their chemical price as compare to the other competitor so firm can earn profit but which is low to as compare to the additional cost and firm can loss. According to Me the KUMKUM COTTON PVT. LTD. earn profit so firm can deal with their cost standard and competitor cotton price determine price standard.

ENTRY AND EXIT BARRIER:-

The KUMKUM COTTON PVT, LTD. Firm can freely enter or exit the market because of the similar type of chemical manufacturing firm already exist in the market so firm cannot compulsory produce or sell the product or satisfied customer needs if any interest. In the oligopoly market no any government rules to enter or exit in the market. If the other chemical manufacturer perfectly compete the KHUSHI CHEMICAL at that time firm can earn more profit or create a value in the market firm can determine the price strategy like a determine price level deal with the total cost and additional cost covering as compare to the competitor chemical price to less price or other factor like packaging, chemical quantity etc.