Essays on Perfect competition

Market Structure As defined by Bain, the Market Structure is the prominent character of the market which persuades the pricing and nature of competition (Scherer ,1970). Depending upon the degree of competition a firm frames its strategies. Jay Gee Melwani Group is operating in a highly competitive market. In order to determine the structure of…

There are four types of market constructions are Perfect Competition, Monopoly, Monopoly Competition and Oligopoly. Long tally is the period of clip that the houses are able to set the variable cost and holes cost. In the long tally, marketer has sufficient clip to come in or go out the market but need to establish…

The ongoing debate about efficiency in perfect competition and monopoly has had divided outcomes. At a first glance it may be easy to say that perfect competition is more efficient than monopoly, and thus better for society. But on closer examination, the issue is not as clear cut. There are underlying issues with the assumptions…

Relationship between the law of diminishing returns and the concept of economies of scale: Law of diminishing returns. The tendency for a continuing application of effort or skill toward a particular reject or goal to decline in effectiveness after a certain level of result has been achieved. The law of diminishing returns say that each…

1.(Demand Under Perfect Competition) what type of demand curve does a perfectly competitive firm face? Why? A horizontal or a perfectly elastic, demand curve. A perfectly competitive firm is called a price taker because that firm must “take,” or accept, the market price- as in “take it or leave it.” 2.Explain the different options a…

The Monopolistic MarketIt is a cardinal fact that the potential of any firm to earn long-run profits and to take any important decision, is directly dependent on the market structure in which it operates. The market can be divided mainly into two major categories – perfect competitive market and imperfect market. The imperfect market structure…

Our daily routines, including breakfast, getting ready for work, and commuting, rely on certain items every morning. Freight transportation plays a vital role in delivering these necessary items to our homes. It not only makes our lives easier but also contributes significantly to any country’s economy. Transportation and distribution chains are essential for delivering commodities…

The concentration ratio, in economics, is simply defined as the percentage size of the total market sales of a firm or a number of firms in relation to the whole industry. Concentration ratio or CR also helps in determining determine the relative size of a single firm as well as the determination of the kind…

There are various market structures in the economy, including perfect competition which is often considered the ideal structure but is theoretical. When comparing perfect competition to other structures like monopoly, monopolistic competition, and oligopoly, it becomes clear that perfect competition is ideal primarily because it possesses productive and allocative efficiency. In perfect competition, numerous small…

The model of perfect competition is built on four assumptions: • Firms are price takers. There are so many firms in the industry that each one produces an insignificantly small portion of total industry supply, and therefore has no power whatsoever to affect the price of the product. It faces a horizontal demand ‘curve’ at…