Construction Economics For Quantity Survey 
Construction Economics
Assignment 01
B. Anushka Priyamal
CSCT2014498
1
Acknowledgement
Firstly, I would like to offer my special thanks to our Construction Economics lecture Dr. Nirodha Fernando who gave the knowledge about Construction
Economics subject and given advice and guide to finish this assignment.
I would also like to offer thank for the staff of the CSCT campus and CSCT librarians who gave books and lab facilities in this attempt.
Finally, my heartfelt thanks are also offered my parents and friends for their support and encouragement throughout do this assignment successfully.
2
Contents
Acknowledgement
02
Contents
03
Introduction
04
Task 01
05 - 07
Task 02
08 - 09
Task 03
10 - 15
Task 04
16
Task 05
17
Task 06
18
Task 07
19 – 20
Task 08
21
Conclusion
22
3
Introduction
Market structure and commodity-price determination are closely related to each other.
Commodity price determination is different in different markets, although theory of price determination is the same in all types of markets. Price of a commodity is determined at that point where it is demand is equal to its supply.
In case of perfect market, price of a commodity is determined by the industry and no firm can change this price. A firm under perfect competition is therefore, a price taker only. At this price, a firm can sells any number or quantity of the homogeneous commodity. In case of monopoly market, a monopoly firm is a price maker. It is also because there is no close substitute of its commodity.
Depending upon the kinds of elasticity of demand of the concerned commodity, a monopoly firm may change different price from different buyers. In the case of monopolistic competition, there also prevails product differentiation. Consequently one price cannot prevail in such a market. In monopolistic competition, there exists non-price competition as well. In such a market determination depends upon the number of close substitutes and price policy of the rival
Assignment 01
B. Anushka Priyamal
CSCT2014498
1
Acknowledgement
Firstly, I would like to offer my special thanks to our Construction Economics lecture Dr. Nirodha Fernando who gave the knowledge about Construction
Economics subject and given advice and guide to finish this assignment.
I would also like to offer thank for the staff of the CSCT campus and CSCT librarians who gave books and lab facilities in this attempt.
Finally, my heartfelt thanks are also offered my parents and friends for their support and encouragement throughout do this assignment successfully.
2
Contents
Acknowledgement
02
Contents
03
Introduction
04
Task 01
05 - 07
Task 02
08 - 09
Task 03
10 - 15
Task 04
16
Task 05
17
Task 06
18
Task 07
19 – 20
Task 08
21
Conclusion
22
3
Introduction
Market structure and commodity-price determination are closely related to each other.
Commodity price determination is different in different markets, although theory of price determination is the same in all types of markets. Price of a commodity is determined at that point where it is demand is equal to its supply.
In case of perfect market, price of a commodity is determined by the industry and no firm can change this price. A firm under perfect competition is therefore, a price taker only. At this price, a firm can sells any number or quantity of the homogeneous commodity. In case of monopoly market, a monopoly firm is a price maker. It is also because there is no close substitute of its commodity.
Depending upon the kinds of elasticity of demand of the concerned commodity, a monopoly firm may change different price from different buyers. In the case of monopolistic competition, there also prevails product differentiation. Consequently one price cannot prevail in such a market. In monopolistic competition, there exists non-price competition as well. In such a market determination depends upon the number of close substitutes and price policy of the rival