Perfect competition and monopolistic competition ppt to pdf
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- Chp 910 MONOPOLISTIC COMPETITION OLIGOPOLY
- Monopoly vs. Oligopoly: What's the Difference?
- Monopolistic Competition.ppt
Chp 910 MONOPOLISTIC COMPETITION OLIGOPOLY
Definition: Perfect competition describes a market structure where competition is at its greatest possible level. To make it more clear, a market which exhibits the following characteristics in its structure is said to show perfect competition: 1.
Large number of buyers and sellers 2. Homogenous product is produced by every firm 3. Free entry and exit of firms 4. Zero advertising cost 5. Consumers have perfect knowledge about the market and are well aware of any changes in the market. Consumers indulge in rational decision making. All the factors of production, viz. No government intervention 8. No transportation costs 9.
Each firm earns normal profits and no firms can earn super-normal profits. Every firm is a price taker. It takes the price as decided by the forces of demand and supply.
No firm can influence the price of the product. Description: Ideally, perfect competition is a hypothetical situation which cannot possibly exist in a market. However, perfect competition is used as a base to compare with other forms of market structure. No industry exhibits perfect competition in India. Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, Description: In this case, the service provider pays the tax and recovers it from the customer.
Service Tax was earlier levied on a specified list of services, but in th. A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is a sovereign risk. Description: Such practices can be resorted to by a government in times of economic or political uncertainty or even to portray an assertive stance misusing its independence.
A government can resort to such practices by easily altering. A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels.
Generally, when an economy continues to suffer recession for two or more quarters, it is called depression. Description: The level of productivity in an economy falls significantly during a d. It is always measured in percentage terms. Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good.
Related goods are of two kinds, i. Description: Apart from Cash Reserve Ratio CRR , banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities.
Treasury bills, dated securities issued under market borrowing programme. In the world of finance, comparison of economic data is of immense importance in order to ascertain the growth and performance of a compan. Description: Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country. Simply state. Marginal standing facility MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
Description: Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short. The MSF rate is pegged basis points or a percentage. Description: If the prices of goods and services do not include the cost of negative externalities or the cost of harmful effects they have on the environment, people might misuse them and use them in large quantities without thinking about their ill effects on the env.
It is an indicator of the efficiency with which a company is deploying its assets to produce the revenue. Asset turnover ratio can be different fro. Choose your reason below and click on the Report button. This will alert our moderators to take action.
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Percentage Point The difference between two percentages is termed as percentage point. Percentage point is used to show the changes in an indicator. Phillips Curve The inverse relationship between unemployment rate and inflation when graphically charted is called the Phillips curve. Related Definitions. Browse Companies:. Mail this Definition.
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Monopoly vs. Oligopoly: What's the Difference?
Do they earn economic profit? Competition Perfect Monopolistic competition competition. Competition Monopolistic Monopoly competition number of sellers one many. The firm uses the MR D curve to set P. Q Quantity. D MR Q Quantity. Perfect Competition.
Premium PowerPoint Slides by Ron Cronovich What market structures lie between perfect competition and monopoly, and what are their characteristics? How do monopolistically competitive firms choose price and quantity? Do they earn.
Definition: Perfect competition describes a market structure where competition is at its greatest possible level. To make it more clear, a market which exhibits the following characteristics in its structure is said to show perfect competition: 1. Large number of buyers and sellers 2.
The model of monopolistic competition describes a common market structure in which firms have many competitors, but each one sells a slightly different product.