In case the number of firms is small and the action taken by one firm is followed by rival firms in the market, it is then to be studied within a separate framework of a…

Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another. In monopolistic in the short run including using market power to generate profit. In the…

In a perfectly competitive market the market demand curve is a downward sloping line, reflecting the fact that as the price of an ordinary good increase, the quantity demanded of that good decreases. Price is…

Economists assume that there are a number of different, buyers and sellers in the marketplace. This means that we have competition in the market, which allows price, to change in response to changes in supply…

The marginal productivity theory was first stated by Von-Thunen. The theory has beers developed by Wick steed Walrus J.B. Clark and many others. Statement of the theory: Marginal productivity theory of wage explains that under…

Price discrimination is the practice of charging a different price for the same good or service. There are three types of price discrimination — first-degree, second-degree, and third-degree price discrimination. Discrimination, alternatively known as perfect…

A market is said to be a perfectly competitive market where a sharp competition exists between a large number of buyers and sellers for a homogeneous product at only one price in all over the…

In terms of production and supply, the long-run is the time period when there is no factor that is fixed and all aspects of production are variable and can therefore be adjusted to meet shifts…

Average revenue product Average revenue product is the unit revenue generated by the use or employment of different quantities of a variable input. It is mostly related to the concept of average product (or average…