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Perfect competition - imagine thousands of little fruit stands around the country. They all sell the same thing, and they have no control over the price. If one fruit stand raises the price, then no one will go there anymore because it's cheaper somewhere else. If they lower the price, they will just lose money.
Oligopoly - Think about credit cards. You have Visa, MasterCard, American Express, and Discover. All have about the same amount of market power, and each company is very interested in what the other is doing. If one lowers its rates, the others will follow suit.
They are similar in that they have multiple firms that offer similar services/products.
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Application of microeconomics?
micro economics is applied in determining the output and prices, demand and supply of goods, working of different markets like perfect competition, monopoly, oligopolistic etc.
Why to study perfect competition if it does not exist in the real world?
By studying perfect competition, we can learn how much an ideally functioning market system might accomplish and we can compare it to real world market structures.
Is bottled water considered a perfect competition?
Perfect competition to what. Please be specific.
Does perfect competition exist?
No, Perfect Competition is just an imaginary one and it does not exist at all.
What is the market structure with the most competition?
Perfect Competition
What type of market form are airlines?
oligopolistic competition
Example of Producer Cooperative in the Philippines?
criticisms on oligopolistic competition
Application of microeconomics?
micro economics is applied in determining the output and prices, demand and supply of goods, working of different markets like perfect competition, monopoly, oligopolistic etc.
What is oligopolistic theory?
An oligopolistic competition is a type of competition between multiple large firms. In this situation, they make up a big part of a market share.
Why to study perfect competition if it does not exist in the real world?
By studying perfect competition, we can learn how much an ideally functioning market system might accomplish and we can compare it to real world market structures.
Is IBM perfect competition?
IBM is a company, so it can't be a perfect competition. Only industries can be a perfect competition, or not.
Is bottled water considered a perfect competition?
Perfect competition to what. Please be specific.
Does perfect competition exist?
No, Perfect Competition is just an imaginary one and it does not exist at all.
What is the market structure with the most competition?
Perfect Competition
Types of Market Competition?
Perfect Competition, Monopoly, Monopolistic Competition or Oligopoly
What does perfect competition do?
Perfect competion lowers the cost of good and services by increasing the competition among firms.
What does monopolistic competition and perfect competition have in common?
they maximize profit
