What's it: Perfect competition is a theoretical market structure concept with many companies producing identical goods or services. In other words, each company offers goods that substitute each other entirely.The perfect competition enables
Market Structure
Concentration Ratio: Meaning, Formula, How to Calculate, Pros, Cons
Concentration ratio (CR) measures the market dominance of the largest companies. We calculate this by adding up the market share of the largest N-companies.In general, this ratio tells us the market concentration on big companies. Although the
Market Structure: Meaning, Types, Characteristics, How to Determine
Market structure refers to the characteristics of market organizations that determine the behavior of companies in an industry. It determines the nature of competition and price and has implications for the market share and profits that companies
Price Ceiling: Meaning, Impacts, Pros, Cons
The price ceiling is the maximum price set by the government for certain goods. Sellers are not permitted to sell higher than that price.The government sets a maximum price to protect consumers from conditions that can make goods very expensive.
Pure Competition: Meaning, Characteristics
Pure competition is another term for perfect competition. In this market structure, there are many producers and consumers, each not large enough to influence market supply and demand. Marketed goods are homogeneous and are a perfect