Interspecific competition

Perfect competition: Perfect competition is the name given to an industry or to a market characterized by a large number of buyers and sellers engaged in the purchase and sale of a homogeneous commodity , with perfect knowledge of market price and quantities There are some characteristics of perfect competition: 1. Large number of buyers and sellers : In the perfect competition , a large number of buyers and sellers exists exists. However the high population of buyers and sellers fail to affect…

1960s there were only two firms in India. This was a period of heavy market concentration with most of the market power in the industry dominated by these two firms. During this period, price competition was ruled out. Competition between firms was on the basis of quality of the good produced. Since the competition was very weak, this gave them leverage to fix prices that could earn very high profits. These excessive profits made the government to enquire into the tyre industry and they found…

sellers trading identical products so that each buyer and seller is a price taker.” The structure of a market can be different depending on the features of competition within the firm. The perfect…

Monopolistic competition is a type of imperfect competition, under this a large number of sellers offer heterogeneous products (different products but has close substitutes) for sale to buyers. The term monopolistic competition was coined by Prof. Edward H. Chamberlin of Harvard University in 1933 in his book, Theory of Monopolistic Competition. Monopolistic competition is currently the most realistic situation that exists in the market. Monopolistic competition can be defined as a competitive…

Industry Regulation and Legislation Dominique J. Fortson National University Industry Regulation and Legislation Industrial regulation is that the industrial regulation of costs charged to the buyer that is additionally called public regulation. The thought is to work out a value, or rate, that covers the assembly price and a good profit for the corporate. The general public interest theory of regulation that states that it "is necessary to stay a natural monopoly from charging…

An Analysis of Market Structures Market structures refer to particular market characteristics including the number of companies, substitutability of products, and the ease of entry of new firms (Gottheil, 2013). It is the level and nature of competition for the services and goods in the market. The market structure for any goods is determined by several factors, including the nature and number of buyers, product nature, nature and number of sellers, economies of scale, market entry and exit…

Nature Of Markets There are four types of nature of markets, which is monopoly, monopolistic, perfect competition and oligopoly. Monopoly Monopoly can be defined as a market structure which is characterized by a single seller which sells a unique product or service in the market. There are four characteristics of monopoly which is that monopoly is a single firm selling all output in the market, a firm which sell that particular product which is unique, requires barriers to enter and exit and is…

OBJECTIVE NUMBER1: TO UNDERSTAND THE MEANING AND CONCEPT OF MONOPOLY {A} Definition: Monopoly is a market structure in which there is a single seller, large number of buyers ; there are no close substitutes for the commodity it produces and there are barriers to entry. The word monopoly is made up of syllables-mono and poly.Mono means single and poly means seller. In simple words, monopoly is that market situation in which a seller has the sole right over production or sale of product and it…

further extend to product differentiation, easiness to entering or exit from the market as well as the level of collusion among these market structures. The main four basic types of market structures that do exist are monopoly, monopolistic, perfect competition and oligopoly market structures. Different market structures have different characteristics that make different business in the market to adapt and compete favorably in a market that is populated with demand for goods and services. The…

An industry is characterized as a Bertrand oligopoly if there are few firms in the market serving many consumers and the firms produce identical products at a constant Marginal Cost (Baye, 2012). Firms engage in price competition and react optimally to prices charged by 
competitors. Consumers have perfect information and there are no transaction costs. Bertrand model is undesirable for the manager, because it leads to zero profits even if there are only two firms in the…