We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Microeconomics - Types of Markets - Research Paper Example

Comments (0) Cite this document
Summary
This paper "Microeconomics - Types of Markets" focuses on the issue of the perfect competition that exists when there are homogeneous products and many buyers and sellers. The competition is much tensed and everyone is fighting the rat race of winning over the other. …
Download full paper
GRAB THE BEST PAPER
Microeconomics - Types of Markets
Read TextPreview

Extract of sample
Microeconomics - Types of Markets

Download file to see previous pages... In the long run, the firms are ought to make a normal profit and the market price is determined by the forces of demand and supply. However, an important point to note is the situation in the long run equilibrium. If demand increases to a great extent, the price will rise. Therefore, the demand curve will shift upwards causing firms to make supernormal profits. More firms would join the industry and hence, the price will fall again settling at the equilibrium rate. Also, if the average costs are greater than the average revenue then most firms would go out of business. Once the supply curve falls, prices tend to rise. Perfect competition means there should be no imperfections in the market which may arise due to lack of knowledge or immobility of resources. Nonetheless, these factors are unrealistic in this world. One of the important reasons why perfect competition does not exist in the real world is the economies of scale. In most of the industries, a firm has to be quite large to experience economies of scale. But in perfect competition, firms have an insignificant market share and are too small to achieve economies of scale. Once a firm expands and achieves economies of scale, it would lower its costs and gain market power. The firm can reduce the prices and drive out the smaller firms from the industry. Hence a perfect competition can only survive in an industry where there are no economies of scale.
Although the perfectly competitive market model is not applicable to the real world setting, it plays a significant role in economic analysis and policy. The model can be used as a criterion to judge the deficiencies of the real world industries and can help the government to articulate policies towards the betterment of the industry.
A single industry that produces a product is called a monopoly. This is not it, however, no close substitutes are present and barriers to enter and exit the market are high. Such barriers include patents, heavy investments, copyrights or achieving economies of a scale comparable to the monopoly.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Microeconomics - Types of Markets Research Paper”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1426919-the-topic-of-my-paper-can-be-anything-related-to-microeconomics
(Microeconomics - Types of Markets Research Paper)
https://studentshare.org/macro-microeconomics/1426919-the-topic-of-my-paper-can-be-anything-related-to-microeconomics.
“Microeconomics - Types of Markets Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1426919-the-topic-of-my-paper-can-be-anything-related-to-microeconomics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Competitive markets, monopolies, oligopolies as types of markets structures
This is a discussion on competitive markets, monopolies, as well as oligopolies as types of markets structures. Oligopoly market structure is, arguably, the most beneficial to the economy. Due to the availability of enough resources and competition between the players, it becomes necessary to invent and innovate.
5 Pages(1250 words)Essay
Marketing-5 types of customer markets
Fast-moving consumer goods (FMCGs) is one type of consumer market. These are generally high volume, low unit value goods that have a fast repurchase cycle. Perishable food items like packed meals, fruits and vegetables, media periodicals such as newspapers, etc are good examples of this type.
2 Pages(500 words)Essay
Microeconomics
Without the mandatory contribution of taxes, and should the government solely generate funds based on voluntary contributions, government revenue will be highly unstable and unpredictable, which could pose a problem on the continuous operations of government agencies and their projects.
1 Pages(250 words)Essay
Microeconomics
These constructions have increased the demand for steel in the Chinese economy and China needs to export large amount of iron and iron ore from foreign countries especially from Australia. Though China has a rich reserve of minerals and metals in their own territory but they are still a net importer of iron ore.
5 Pages(1250 words)Essay
What is the microeconomics
However, the two are interdependent in that they both examine impacts of business activities in terms of demand and supply. Microeconomics can be defined as a branch of economics which studies the behavior of individuals and the firms in making business decisions regarding resource allocation and price of goods and services.
4 Pages(1000 words)Term Paper
Microeconomics
When a loan investment is not recovered and it goes into default it starts a domino effect for the bank institutions. The investment that is not recovered leads to a bank loss. In order to make up
2 Pages(500 words)Essay
Microeconomics
At the first glance, this seems to be unrealistic; there are some items in the real market which enjoys all the privileges of monopoly. Bill Gates, the owner of Microsoft
4 Pages(1000 words)Essay
Microeconomics
It talks about how an over-supply of cars has effected the marketplace in Europe. There is little question that the changing global business environment has a major impact on both the market for automobiles and the structure of the automobile industry. For a
2 Pages(500 words)Assignment
Microeconomics
This is just a simple explanation of these two economic principles because, in reality, it is a lot more complicated than that. Microeconomics is to do with the market’s
2 Pages(500 words)Essay
Microeconomics
) The banks and investors can take advantage of the covered in arbitrage by investing in foreign currency and locking the position and eliminating the foreign exchange risk by entering into a forward contract. The forward contract involves buying the home currency at a future
2 Pages(500 words)Essay
Let us find you another Research Paper on topic Microeconomics - Types of Markets for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us