Theory of price
Theory of price defines the term optimum price as that price which yields the maximum profits. What is theory of price? The basic approach in most of the micro-economic theory (i.e. theory of the individual firm and its relation to…
Category Economics
Monopolistic Competition
Monopolistic Competition is one in which there are large number of firms producing similar but not identical products. What is Monopoly? Monopoly is a market condition where there is only one supplier or producer of a homogenous product for which…
Perfect Competition
Under perfect competition market, there are large numbers of sellers selling a homogeneous product using identical production process. And all of them have perfect information about the market and price. What is prefect competition? Under perfect competition market, there are…