Competition Perfect Competition Is An Economic Concept...

Question 7 Perfect competition: Perfect competition is an economic concept, there are lots of seller’s sells homogeneous products in the market and there are many buyers. There are no barriers to enter into the market. Furthermore both the buyers and sellers have good information regarding price so that sellers can offer a competitive price to the buyers and also buyers can compare the price to have the best choice. Monopolistic competition: Monopolistic competition is market structure in which firms have lots of competitors in the market but everyone sells slightly different products. Examples grocery shops and Restaurants in Newzealand. Oligopoly: Oligopoly is a market structure where there are a few sellers selling slightly different products to each other in the market but have significant influence in the market price. Examples banks and Airlines. Monopoly: Monopoly is a market structure where there is an only one seller sells product in the market. There are no any competitors in the market and firm have full control on the price. Characteristics of each market structures: ï  ¶ Perfect competition 1) There is no need for government regulation expects to make markets more competitive. 2) There are huge numbers of competitors in the market 3) Firms produce homogenous products which are not branded. ï  ¶ Monopolistic competition 1) Each company can makes their own decision regarding price and output based on its products. 2) All firms are able to enterShow MoreRelatedExplain, and Illustrate Using Graphs, Whether You Think a Perfectly Competitive Industry or a Monopoly Industry Leads to More Efficient Outcomes for an Economy1740 Words   |  7 Pagesdefined as a study of how economic decisions are made by individuals and groups along with the range of factors affecting those decisions. In relevance to this, the analysis of perfect competition and monopoly regarding efficiency is considered one of the most core basis to the understanding of Microeconomics. This paper argues that a perfectly competitive industry leads to more efficient outcomes for an economy than a monopoly does. In this essay, I will first define the concept of two market structureRead More Challenging Comparative Advantage Essay1410 Words   |  6 Pagesunderlying assumptions of comparative advantage depend on states of economic equ ilibrium and an absence of economy of scale. In reality, economies are dynamic and subject to innovation and interference; which has led to revised assumptions of return and competition (Krugman, 1987). These factors have created questions of free trade and governmental participation in an economy by the development of strategic trade policies. 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