There are many markets that have come to existence in today’s society. Each market can affect the U.S economy in many ways. These market can affect the prices, output, and profits in a negative or positive way. The markets include Perfect Competition, Monopolistic Competition, Oligopolies and Monopolies. There are many ways that prices can be affected. Though, when perfect competition is in motion, price is only affected by demand and supply. Likewise, the prices are kept low. Monopolistic competition prices are slightly higher than perfect competition. However, monopolies and oligopolies can raise the price while lowering supplies.
When the prices change, outputs can vary. Although its prices stay low, perfect competition sets the equilibrium
When the prices change, outputs can vary. Although its prices stay low, perfect competition sets the equilibrium