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posting 28122
posting 28122

... all other types of competitive behavior. At the other end, monopoly represents an absolute lack of competition such that a single firm in the industry has a high degree of price-making ability. PERFECT COMPETITION: With a large number of firms, a high degree of product similarity and perfect market ...
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... In this chapter, look for the answers to these questions: • What factors affect buyers’ demand for goods? • What factors affect sellers’ supply of goods? • How do supply and demand determine the price of a good and the quantity sold? • How do changes in the factors that affect demand or supply affe ...
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... • The average total cost of production decreases as a result of increasing the number of different goods produced. • For Example, McDonalds can produce Hamburgers & Fries cheaper than other companies could produce either individually. ...
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... Profit = total revenue – total cost Profit loss = total cost > total revenue Functions of profit: • Incentive to produce • Reward for risk takers • Encourages invention and innovation • Indicator of growth • Source of finance Surplus (revenues exceeding costs, A.K.A extra money) The difference betwe ...
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... performance.”  Businesses are part of a larger society in which they operate  They exist within a society and therefore they should be accountable for their activities and the impacts of their activities on the society  Businesses and societies may have conflicting interests  Businesses are prof ...
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... concentrate on what they do best for them to remain competitive on the market. The Aggregate market Before the concept of market segmentation, most companies were pursuing a market aggregation strategy. In this approach, companies would develop one product and supplied to the market hoping that such ...
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Perfect competition

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
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