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If the buyers are from different markets or are part of so-called non-competing groups, monopolists might charge different rates for the same products from these markets. Price discrimination and discriminatory monopoly describe the situation. Price discrimination is the practice of charging different prices to customers with varying quantities of the same item. Definition of Price…
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A company, to reach its equilibrium and to find price and output determination under perfect competition (figure 6.6). Conditions of Price and Output Determination Under Perfect Competition 1.) A marginal income must be at least equal to the marginal cost, that is, MR=MC. If MR is higher than MC, there is always a reason for…
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A market with many buyers and sellers involved in buying and selling homogeneous products with perfect market knowledge is called a perfectly competitive market. The fruit and vegetable market is an example of a perfectly competitive market. Definition of Perfect Competition According to A. Koutsoyiannis, “Perfect competition is a market structure characterized by a complete…
This article will teach you the meaning of price, pricing, and pricing objectives. It will help you decide the future pricing policies for your business.Price is the amount of money charged for a product or service or the sum of the values consumers exchange for the benefits of having or using the product or service….
After analyzing and interpreting the data and subsequently, the information that is obtained from various primary and secondary sources, the next step is to adequately predict the future demand for the underlying product the service. Demand forecasting techniques help in analyzing data. For this, you have knowledge about the theory of demand. Demand Forecasting Techniques…
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Utility The power to satisfy one’s want or desire is the utility of the commodity. You can take measurement of utility. The literal meaning of the term ‘utility’ is ‘usefulness’ but in economics, it implies the capacity to satisfy the want of a good. Simply to say, utility is value-in- use of a commodity. Utility…
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In this article, we will discuss the different types of demand and you will learn the most effective factors that affect the market demand functioning. If you are looking for a descriptive answer, so follow this write-up till to the end. Different 8 Types of Demand These are the types of demand that we will…
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The relative responsiveness of a supply or a demand curve in respect to price is referred as elasticity. If the curve is more elastic then it means the more quantity will be changed in respect to price change.
The representation of different combinations of two goods on a curve is done by indifference curve that provides a consumer equal level of satisfaction. Between these curves the consumer is indifferent as he gets equal satisfaction from all the combinations.
Forecasting is a technique that facilitates the process of planning and enabling efficient decision-making. By this estimates, projections are made for the future. Combining the aspect of forecasting with demand, it serves with the future projections regarding the quantity demanded in precise. Certain questions like which product will be in demand
