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perfect competition

The Firm’s Production Decision under Perfect Competition: Price Taking and Output Determination

Admin016 mins

Introduction In economics, the concept of perfect competition represents an ideal market structure where numerous firms operate freely, selling identical products, and where none possesses the power to influence the market price. Every firm under perfect competition is a price taker, not a price maker. This means that the firm has no control over the…

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Perfect Competition and Monopolistic Competition

Similarities and Dissimilarities Between Perfect Competition and Monopolistic Competition

Admin012 mins

Introduction In microeconomics, understanding different market structures is fundamental to analyzing firm behavior, pricing decisions, and output determination. Two important market forms that are frequently studied are perfect competition and monopolistic competition. While both market forms share certain characteristics, they also differ significantly in key aspects such as product differentiation, pricing power, and the nature…

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