chapter 6 we recall that perfect competition is a market structure where both consumers and firms are price takers the behaviour of the firm in such circumstances was described in ...
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...Chapter we recall that perfect competition is a market structure where both consumers and firms are price takers the behaviour of firm in such circumstances was described discussed approximated by satisfying following conditions i there exist very large number commodity output sold each negligibly small as compared to total all combined similarly amount purchased consumer extremely comparison uantity together ii free start producing or stop production e entry exit iii produced industry indistinguishable from others any other cannot substitute this iv have knowledge inputs their prices n shall discuss situations one more these not satisfied f assumption dropped it becomes difficult for enter then may many extreme case only uch buyers called monopoly has an oligopoly otice dropping leads well imilarly goods those implies close substitutes but markets assumptions hold does with monopolistic examines structures simple which single seller hidden line definition however need be explicitly st...