_Amount of control a firm or a group of firms have over the total market supply
_The amount of influence a firm or group of firms have over market price
_The freedom new suppliers have to enter the market
The economists still use perfect competition as a credible theory because it is what the market strives to achieve. Markets strive to let buyers and sellers trade without unfairly giving the advantage to one party.
Economists use two sets of concepts to answer questions. First they apply efficiency concepts such as productive efficiency. Then they ask how perfect competition and monopoly affect the consumer.
market failer
Perfect Competition
The business model that creates a market structure that closely resembles pure competition is a monopolistic competition. Pure competition is also called perfect competition.
The economists still use perfect competition as a credible theory because it is what the market strives to achieve. Markets strive to let buyers and sellers trade without unfairly giving the advantage to one party.
Economists use two sets of concepts to answer questions. First they apply efficiency concepts such as productive efficiency. Then they ask how perfect competition and monopoly affect the consumer.
market failer
Keynesian economics is free market
Oligopoly, Pure competition, Monopolistic competition
Perfect Competition
The business model that creates a market structure that closely resembles pure competition is a monopolistic competition. Pure competition is also called perfect competition.
Perfect Competition, Monopoly, Monopolistic Competition or Oligopoly
Adam Smith is associated with a market economy.
Early capitalist economists argued that supply-and-demand pricing worked better without any regulation or control. Their model of perfect competition was marked by absolute freedom of trade, widespread knowledge of market conditions, easy access of buyers to sellers, and the absence of all action restraining trade by agencies of the state. Under such conditions no single buyer or seller could materially affect the market price of an item. After 1850, practical limitations to competition became evident as industrial and commercial combinations and trade unions arose to hamper it.
deal with the fundamental problem of scarcity
Market in Economics is the result of contanct between the buyers and sellers, as a result of which one product of a given quantity and trade mark is brought and sold at one place. Types of markets 1.on the basis of place or area , market is classified into three types: i)local market, ii) national market and iii)international market. 2.on the the basis of time market is classified into four types: i)market period, ii)short period, iii)long period and iv)secular market. 3.on the basis of degree of competition market is classified into three types: i) Perfect competition ii) Imperfect competition and iii) Monopoly