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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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Price Determination

Discriminating Price Determination: Concept, Justification, and Diagrammatic Explanation

Admin011 mins

Introduction In the study of microeconomics, pricing decisions made by firms are central to understanding market behavior. Under conditions of monopoly or market power, a seller is not bound to charge a uniform price for a product. Instead, the seller may charge different prices for the same commodity in different markets or from different consumers….

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