Perfectly Competitive Market
Markets in Practice
Market structures affect the economic outcomes for producers and consumers. Students investigate the features of the following market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. (Note that a knowledge of cost and revenue curves is not required.)
Students evaluate market structures in terms of meeting the needs of consumers and producers, using criteria that include price, choice, quality, efficiency, profitability, and use of new technology.
Students investigate the effects of market failure on consumers and producers, including the under-provision of public goods, the existence of positive and negative externalities, and the impact of uncompetitive markets. Students evaluate measures to redress market failure and investigate a range of market decisions and outcomes that are inconsistent with social, moral, and ethical values.
perfect competition - the economics of competitive markets
Introduction
The degree to which a market or industry can be described as competitive depends in part on how many suppliers are seeking the demand of consumers and the ease with which new businesses can enter and exit a particular market in the long run.
The spectrum of competition ranges from highly competitive markets where there are many sellers, each of whom has little or no control over the market price - to a situation of pure monopoly where a market or an industry is dominated by one single supplier who enjoys considerable discretion in setting prices, unless subject to some form of direct regulation by the government.
In many sectors of the economy markets are best described by the term oligopoly - where a few producers dominate the majority of the market and the industry is highly concentrated. In a duopoly two firms dominate the market although there may be many smaller players in the industry.
Competitive markets operate on the basis of a number of assumptions. When these assumptions are dropped - we
Market structures affect the economic outcomes for producers and consumers. Students investigate the features of the following market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. (Note that a knowledge of cost and revenue curves is not required.)
Students evaluate market structures in terms of meeting the needs of consumers and producers, using criteria that include price, choice, quality, efficiency, profitability, and use of new technology.
Students investigate the effects of market failure on consumers and producers, including the under-provision of public goods, the existence of positive and negative externalities, and the impact of uncompetitive markets. Students evaluate measures to redress market failure and investigate a range of market decisions and outcomes that are inconsistent with social, moral, and ethical values.
perfect competition - the economics of competitive markets
Introduction
The degree to which a market or industry can be described as competitive depends in part on how many suppliers are seeking the demand of consumers and the ease with which new businesses can enter and exit a particular market in the long run.
The spectrum of competition ranges from highly competitive markets where there are many sellers, each of whom has little or no control over the market price - to a situation of pure monopoly where a market or an industry is dominated by one single supplier who enjoys considerable discretion in setting prices, unless subject to some form of direct regulation by the government.
In many sectors of the economy markets are best described by the term oligopoly - where a few producers dominate the majority of the market and the industry is highly concentrated. In a duopoly two firms dominate the market although there may be many smaller players in the industry.
Competitive markets operate on the basis of a number of assumptions. When these assumptions are dropped - we