Definition: The Oligopoly Market characterized by few sellers, selling the homogeneous or differentiated products. In other words, the Oligopoly market structure lies between the pure monopoly and monopolistic competition, where few sellers dominate the market and have control over the price of the product. Under the Oligopoly market, a firm either produces: Homogeneous … [Read more...] about Oligopoly Market
Monopolistic Competition
Definition: Under, the Monopolistic Competition, there are a large number of firms that produce differentiated products which are close substitutes for each other. In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price. Features of Monopolistic Competition Product … [Read more...] about Monopolistic Competition
Perfect Competition
Definition: The Perfect Competition is a market structure where a large number of buyers and sellers are present, and all are engaged in the buying and selling of the homogeneous products at a single price prevailing in the market. In other words, perfect competition also referred to as a pure competition, exists when there is no direct competition between the rivals and all … [Read more...] about Perfect Competition
Market Structure
Definition: The Market Structure refers to the characteristics of the market either organizational or competitive, that describes the nature of competition and the pricing policy followed in the market. Thus, the market structure can be defined as, the number of firms producing the identical goods and services in the market and whose structure is determined on the basis of … [Read more...] about Market Structure
Properties of Indifference Curve
Definition: The Indifference Curve is the graphical representation of the combination of two goods, that gives equal satisfaction and utility to the consumer. Properties of Indifference Curve Downward Sloping: An indifference curve slope downward, which means, that with the more consumption of one good the consumption of the other is to be reduced to maintain the … [Read more...] about Properties of Indifference Curve
Indifference Curve
Definition: The Indifference Curve shows the different combinations of two goods that give equal satisfaction and utility to the consumers. In other words, the indifference curve is the graphical representation of different combinations of goods (generally two), for which the consumers are indifferent, in terms of the overall satisfaction and the utility. Assumptions of … [Read more...] about Indifference Curve
Types of Iso-quant Curves
Definition: An Iso-Quant curve is the geometrical representation of the different combinations of input factors employed to produce the given level of output. Types of Iso-quant Curves The iso-quant curves can be classified on the basis of the substitutability of factors of production. These are: Linear Iso-quant Curve: This curve shows the perfect substitutability … [Read more...] about Types of Iso-quant Curves
Properties of Iso-quant curve
Definition: An Iso-quant curve shows the different combinations of factors of production Viz. Labor and Capital employed to yield the given level of production. Properties of Iso-quant Curve The iso-quant curve is negatively sloped, which means, in order to have a same level of production, the more use of units of one input factor is to be offset with the lesser … [Read more...] about Properties of Iso-quant curve
Iso-quant Curve
Definition: An Iso-quant Curve shows all the possible combinations of input factors that yield the same quantity of production. In other words, an iso-quant curve is a geometric representation of the production function, wherein different combinations of labor and capital are employed to have the same level of output. The iso-quant curve is also known as Iso-Product Curve. … [Read more...] about Iso-quant Curve
Constant Elasticity of Substitution Production Function
Definition: The Constant Elasticity of Substitution Production Function or CES implies, that any change in the input factors, results in the constant change in the output. In CES, the elasticity of substitution is constant and may not necessarily be equal to one or unity. The constant elasticity of substitution production function can be shown algebraically as: Q = A [ α … [Read more...] about Constant Elasticity of Substitution Production Function