Category: Economic Conditions

Oligopolistic Market


Oligopoly is a form of market where there is domination of a limited number of suppliers and sellers called Oligopolists. In reality, it is the Oligopoly market which exists, having a high degree of market concentration. This indicates that a huge percentage of the Oligopoly market is occupied by the leading commercial firms of a country. These firms require strategic planning to consider the reactions of other participants existing in the market. This is precisely why an oligopolistic market is subject to greater risk of connivances.

 

Prefect Competition


The Theory of Perfect Competition deals with a hypothetical form of the market, where the power of influencing the market prices rests neither with the manufacturers nor the consumers. The standard definition of efficiency in economics believes that the Theory of Prefect Competition will end in a totally efficient result.

Assumptions guiding the Theory of Perfect Competition:

The concept of Perfect Competition is based on certain hypotheses as mentioned and described below:

Game Theory


Money Supply Theory


Microeconomics


According to Economypedia, “Microeconomics is a division of economics, which studies the ways by which individuals, firms and families take decisions regarding allocation of the limited amount of resources at their disposal. The studies are done in a context of markets where goods and services are traded.”

Economypedia entry on Microeconomics

Demand and Supply of Foreign Exchange


Demand and Supply of Foreign Exchange influences the determination of exchange rates and vice versa. The demand for foreign exchange is inversely proportional to the rise of exchange rate. As the exchange rate goes up the demand for foreign exchange declines. The quantity of foreign exchange demanded falls. The supply of foreign exchange shifts depending on demand and not on the exchange rate. If the supply aspect of transaction is plotted on a graph it will be vertical since the supply of foreign currency deposits available at any time is fixed.

Theory of Money Demand


In economics, the Theory of Money Demand stresses on the positive relationship existing between the general prices or the nominal expense rate and the total amount of money.