Any firm or even group of firms not behaving in this way would be unable to survive for very long as the competitive pressures from those firms who were responding to consumers' wishes would soon drive them into extinction. Consumer and producer sovereigntyīecause of the conditions of perfect competition - many buyers and sellers, perfect knowledge and freedom of entry - firms would be forced to produce those goods and services which consumers most wanted. ![]() If you are unsure about the meaning of any of these concepts, it would be advisable at this stage to refer to the relevant sections before proceeding. In the discussion that follows, we shall draw extensively upon several concepts that have been introduced earlier that is, the perfect competition model and the various types of economic efficiency, static, dynamic, productive and allocative. ![]() perfect competition Monopoly compared with perfect competition
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