Features of Competition

Features of Competition - market type has a different...

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Features of Competition Introduction: A firm is the smallest unit of production. The objective of a firm is to maximize profits. This it can achieve by minimizing cost of production, or maximizing total revenue ( Price × Output). The prospects of profit for a firm are further guided by market conditions . In a market where a firm has to sell its output there may be competitive , monopolistic or oligopolistic conditions . Each
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Unformatted text preview: market type has a different impact on the price and quantity sold by the firm. All these market types will be analyzed in the present and following chapters. Besides the difference in the number of firms under competition and monopoly there are also qualitative distinctions. I n modern markets the popular practice of Product Differentiation exists. All this will be studied under different forms of the market....
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