Market Structure And Price Determination Pdf
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- Market Structure: Meaning, Characteristics and Forms | Economics
- Price Determination under Imperfect Competition (Explain with Diagram)
- The Impact of Price on Marketing Structure.pdf
- The Firm and Market Structures
Market Structure: Meaning, Characteristics and Forms | Economics
Market structure refers to the nature and degree of competition in the market for goods and services. The structures of market both for goods market and service factor market are determined by the nature of competition prevailing in a particular market. But, in economics, market is used in a wide perspective. This is because in the present age the sale and purchase of goods are with the help of agents and samples. Hence, the sellers and buyers of a particular commodity are spread over a large area. Thus, market in economics does not refer to a particular market place but the entire region in which goods are bought and sold. In these transactions, the price of a commodity is the same in the whole market.
Price Determination under Oligopoly. Oligopoly is that market situation in which the number of firms is small but each firm in the industry takes into consideration the reaction of the rival firms in the formulation of price policy. The number of firms in the industry may be two or more than two but not more than Oligopoly differs from monopoly and monopolistic competition in this that in monopoly, there is a single seller; in monopolistic competition, there is quite a larger number of them; and in oligopoly, there are only a small number of sellers. The oligopolistic industries are classified in a number of ways:. Duopoly is further classified as below:. Oligopoly is further classified as below:.
Price Determination under Imperfect Competition (Explain with Diagram)
MARKET, MARKET STRUCTURE AND PRICE DETERMINATION. Meaning of Market. In the words of Cournot a French economist, “Economists understand by.
The Impact of Price on Marketing Structure.pdf
Price Determination under Monopoly. Monopoly is that market form in which a single producer controls the whole supply of a single commodity which has no close substitute. From this definition there are two points that must be noted:. Thus single firm constitutes the industry.
Market structure: refers to number of firms operating in an industry, nature of competition between them and the nature of product. Types of market on the basis of competition a Perfect competition. Firms sell homogeneous products at a uniform price. Very large number of buyers and sellers. Homogeneous product.
The Firm and Market Structures
This paper argues that the market rules governing the operation of the England and Wales electricity market in combination with the structure of this market presents the two major generators National Power and PowerGen with opportunities to earn revenues substantially in excess of their costs of production for short periods of time. Generators competing to serve this market have two strategic weapons at their disposal: 1 the price bid for each generation set and 2 the capacity of each generation set made available to supply the market each half-hour period during the day. We argue that because of the rules governing the price determination process in this market, by the strategic use of capacity availability declarations, when conditions exogenous to the behavior of the two major generators favor it, these two generators are able to obtain prices for their output substantially in excess of their marginal costs of generation. The paper establishes these points in the following manner. First, we provide a description of the market structure and rules governing the operation of the England and Wales electricity market, emphasizing those aspects that are important to the success of the strategy we believe the two generators use to exercise market power. We then summarize the time series properties of the price of electricity emerging from this market structure and price-setting process. By analyzing four fiscal years of actual market prices, quantities and generator bids into the market, we provide various pieces of evidence in favor of the strategic use of the market rules by the two major participants.
Price Determination under Monopolistic Competition. Imperfect competition covers all situations where there is neither pure competition nor pure monopoly. Both perfect competition and pure monopoly are very unlikely to be found in the real world. In the real world, it is the imperfect competition lying between perfect competition and pure monopoly. The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition. The monopolistic competition is one form of imperfect competition.