Microeconomics, Perfect Competition
In the world of economics, perfect competition is a market structure that holds great significance. It represents an ideal scenario where numerous buyers and sellers engage in the exchange of goods or services, with no individual entity having the power to influence...
Microeconomics, Monopoly, Perfect Competition
One of the very important Perfect and Imperfect markets namely Perfect competition and Monopoly has always been studied in every foundation course of Economics. These are the distinguishing features of both the markets. Perfectly Competitive Market – Perfect...
Microeconomics, Perfect Competition
1. Perfectly competitive firm cannot affect the market price Because all the products sold in the market are identical–any rise in price leads to loss of customers Because there are many buyers and sellers- so the firm isn’t the only firm which sells that...
Microeconomics, Perfect Competition, Profit Maximization in Short-Run
There is a very basic concept of understanding Profit maximization either for Perfect Competition or another market model. For almost all markets, the concept is similar. Total Revenue If Q is output of the firm, Total Revenue is : Total Revenue = Price x...
Microeconomics, Perfect Competition
Although this type of market does not have a real or physical existence, yet it is most importantly used for understanding the Basic Market models of Economics. Let us discuss this topic step by step: Basic Assumptions of Perfectly Competitive Markets Price taker: The...
