MARKET INFLUENCES

Market Influences

Market Influences

Any introductory course in microeconomics spends a considerable amount of time examining perfectly competitive markets. It is important to understand this model; it serves as a benchmark for examining other industry structures and the welfare consequences of moving away from perfect competition. While the perfectly competitive market assumes a large number of buyers and sellers, each of which is a price taker, in the monopoly market assumes the opposite: it is the one seller with full control over price. Structurally, most markets are neither perfectly competitive nor monopolistic; they fall somewhere in between these two ...