Abstract
AbstractSo far we have been assuming that markets are perfectly competitive and consumers and firms are taking market prices as given. The assumption is justified by the supposition that there are very large number of consumers and firms so that market prices are not much affected by the actions of any single consumer or firm. As a result of perfect competition, equilibrium prices are equalized to marginal costs. Perfect competition is, however, an exceptional polar case, which should be regarded as an idealistic or limiting situation, since many firms are not taking prices as given and prices are, in general, different from marginal costs in the real world. While perfectly competitive markets are homogeneous and resemble one another as happy families, imperfectly competitive markets are heterogeneous and imperfect, like unhappy families, in many different ways.KeywordsMarginal CostDemand CurveIndifference CurveInverse Demand FunctionNash SolutionThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
