Economics

Perfect Market Competition

Perfect Market competition In economic theory, perfect/pure competition describes markets such that no participants are large enough to have the market power to set the quantity of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly com.....

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Monopoly Market Competition

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. The Monopoly is a market structure characterized by a single seller, selling the unique product with the restriction for a new firm to enter the market. Monopolies are thus characterized by a.....

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Duopoly Market Competition

A true duopoly is a specific type of oligopoly where only two producers exist in one market. A duopoly is a situation in which two companies own all or nearly all of the market for a given product or service. In reality, this definition is generally used where only two firms have dominant control.....

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Oligopoly Market Competition

Oligopoly: Oligopoly is a common market form. As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. Oligopolistic competition can give rise to a wide range of different outcomes. In some situations, the firms may employ restrictive trade practices (coll.....

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Monopolistic Market Competition

Monopolistic market competition is a type of imperfect competition such that competing producers sell products that are differentiated from one another as good but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged b.....

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Market definition with Characteristics and Types

Market is a public place where buyers and sellers make transactions, directly or via intermediaries. Also sometimes means the stock market. It is an actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to tra.....

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Black Economy

Black Economy is the segment of a country’s economic activity that is derived from sources that fall outside of the country’s rules and regulations regarding commerce. The activities can be either legal or illegal depending on what goods and/or services are involved. Examples include .....

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Theory of Financial Economics

Theory of Financial Economics Introduction Financial Economics is a branch of economics that analyzes the use and distribution of resources in markets in which decisions are made under uncertainty. Its concern is thus the interrelation of financial variables, such as prices, interest rates and sh.....

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Social Welfare Maximization

Social Welfare Maximization The Simple Analystics of “Welfare Maximisation” has presented a more thorough and systematic analysis of the problem of social welfare maximisation. It is a summary of the static long-run general equilibrium conditions of a perfectly competitive economy. It combine.....

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Introduction of Economic Policy

Introduction of Economic Policy Economic Policy is the term used to describe government actions that are intended to influence the economy of a city, state, or nation. Some examples of these actions include setting tax rates, setting interest rates, and government expenditures. It is a course of .....

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Introduction of Game Theory

Introduction of Game Theory Game Theory is an economical term. It is actually brought about a revolution in economics by addressing crucial problems in prior mathematical economic models. For instance, neoclassical economics struggled to understand entrepreneurial anticipation and couldn’t .....

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Market Power and Regulation

Market Power and Regulation Jean Tirole is one of the most influential economists of our time. He has made important theoretical research contributions in a number of areas, but most of all he has clarified how to understand and regulate industries with a few powerful firms. Thus regulation is es.....

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