There is no incentive to deviate from the price set by the market. All firms must sell their output at the same price set by supply and demand in the industry. Firms are "Price Takers": This means that firms have no control over the price at which they sell their goods in the market.Many, small firms in the industry: In perfect competition, there are hundreds or thousands of small firms that all sell identical products.Market structures are distinctive based on certain characteristics including the number of firms that are in them, barriers to entry and exit, control over price, and whether the goods are identical or differentiated. The four main market structures are perfect competition, monopoly, monopolistic competition, and oligopoly. There are several market structures that we will look at. In economics, every good or service is sold within a market structure.
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