What are the similarities between perfect competitive market and monopoly market?
There are only a few similarities between the perfect competitive market and monopoly market. Both have many buyers and numerous goods offered.
What is the similarities between perfect competitive monopoly monopolistic competition and oligopoly?
first we need to find what is monopoly and what is perfect competition. Monopoly is the market structure that have only one seller, and only sell the unique products. And Monopoly also have very high barriers entry and its impossible to entry. Otherwise, Perfect competition is the market structure that have many small firms, and only sell the homogeneous products. Perfect competition also have a very low barriers entry, so its very easy to entry…
In which type of market do individual firms have no incentive to advertise that is to engage in non-price competition?
Probably Monopoly, Oligopoly, Competitive Oligopoly and Perfect Competition. Corresponding to 1, 2-5, 10-30, or very many firms. It really depends on the product though - perhaps 10-30 firms is already enough to create perfect competition. Another characterization might be: Monopoly (1), Duopoly (2), Oligopoly (3 - ~ 30), Perfect Competition (many firms).
characteristics of perfectly competitive market includes 1.Homogeneous products i.e identical in shape,size,taste,color,e.t.c 2.perfect knowledge to both consumers and producers 3.no transport costs incurred 4.perfect mobility of factors of production 5.common prices for identical goods in the market. 6.
Why don't monopolistically competitive firmes produce the same out put in the long run as perfectly competitive firms which face similar costs?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
In a perfect competition, the buyer is free to buy from any seller he or she chosses. :) in perfect competition there are many industries and the product is homogeneous in monopolistic competition there are many industries but the product is not homogeneous in monopoly there is only one company that produces the product in oligopoly there are not many industries that produces the product and there is a leader industry which "Rules" and controls…
Monopolistic competition involves slightly differentiated products while monopoly involves a single product. In a monopoly there is exclusive control of the supply or trade of a commodity or service. In monopolistic competition the competition is imperfect and many producers sell products that are slightly different and not perfect substitutes.
What are the differences between a perfect or pure monopoly a monopolistic competition oligopolies a perfect or pure competition?
Not many differences. Capitalism favors competition among private companies, but rarely creates monopolies. One source, in the references, says monopolies can be created by governments more than private companies. References: http://www.americansolvent.com/2009/07/03/competition-vs-monopoly-whats-the-big-confusion/
There is not a number that is a perfect square and perfect cube between 1 and 25. There is not a number that is a perfect square and perfect cube between 1 and 25. There is not a number that is a perfect square and perfect cube between 1 and 25. There is not a number that is a perfect square and perfect cube between 1 and 25.
The concept of perfect competition is based on a large number of small firms, where no single firm can affect the market price. These firms operate as price takers, and use the cost supplied by the market. These ideal companies would insure efficiency. However, perfect competitive firms are unrealistic in real world scenarios.
There are various reasons why monopoly leads to an inefficient outcome. Some of the reasons are as follows: * It produces less output that what a competitive market would and charge higher price which ultimately leads to a decline in consumer surplus and a deadweight loss. * Monopoly charges a price above its marginal cost, i.e. P > MC, and this results in an allocative inefficiency * A monopoly doesn't produces at the lowest point…
for classical theories look up thomas malthus ... Also, classical theories say there is an "invisible hand" that guides the economy back to equilibrium. Marx said that the economy should be controlled, thus making to go to equilibrium when you want it to. Only problem is equilibrium isn't a definite spot and depends on market demand and supply. But when the market is controlled these things get trickier. I have only studied oligopoly, monopoly, perfect…
The perfectly competitive market is an economic anomaly; it does not exist in real life, because of the unreal circumstances that need to occur in perfectly competitive industries. Perfectly competitive markets have so many competing firms, that one firm cannot change the overall market price of the good that the firm is selling. In a perfectly competitive market, there is perfect economic efficiency for each firm. Each firm's demand curves are perfectly elastic (vertical), although…