Day: January 15, 2022

This refers to the market structure dominates by large few firms. The number of sellers (firms) is small enough for other sellers to take account of each other i.e. if one seller changes his prices or uses non- price strategies Read More …

This is a form of imperfect competition which lies between the extremes of perfect competition and monopoly and includes elements from both markets. Examples include: restaurants, hair dressers etc Characteristics 1 There are many buyers and sellers in the market Read More …

Monopolies are usually associated with economies of scale because of the large size of the market controlled by the firm. Economies of scale imply lower unit’s costs of production. It is likely that the consumer will benefit from this cost Read More …

Perfect market is a market with many buyers and sellers where nobody can determine the price of goods or services. Characteristics Large number of buyer and sells where each individual firm supplies part of total quality supplied. Buyers are many Read More …

Mergers occur where two firms agree mutually to joint their operations together. While an acquisition occurs when a firm called a predator decides to take over another firm referred to as a prey either forcefully of willings. Mergers and acquisitions Read More …

In the long run, all the input into production processes are variable so the problems associated with diminishing returns to the variable factors do not arise. The law of diminishing returns therefore only applies to short run costs and not Read More …