theory of factor pricing & output determination
Post on 28-Apr-2015
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Theory Of Pricing & Output Determinati on
Market Structure:-
1. Pure Competition.
2. Perfect Competition.
3. Monopoly.
4. Monopolistic Competition.
5. Oligopoly.
Pure Competi ti on
Large No of Sellers & Buyers
Homogeneous Product
Free Entry & Exist
Perfect Competi ti on
Perfect Knowledge of the Market
Absence of Transport Cost
Perfect Mobility of the factors of production
Monopoly
Pure or Perfect Monopoly
1.Only one firm producing the commodity
2.There should be no substitute for commodity.
Characteristics Features Of Monopolistic Competition
Existence of Number of Firms
Product Differentiation
Easy Entry & Exist
Multiplicity of Price
Elastic Demand
Features of Oligopoly
1. Small no. of Sellers & buyers
2. Product differentiation not a necessary condition
3. Control over price restricted by Mutual
Independence
4. Barriers to Entry
5. Advertising & Sales Promotion.
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