The concept of Monopolistic Competition is concerned with the common form of a market and its competitions. Monopolistic Competition is present in various industrial sectors such as apparels, restaurants, footwear, food and in the service sectors as well.
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.
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.
The concept of Perfect Competition is based on certain hypotheses as mentioned and described below:
Economic graphs are related to economics, which is a branch of social science that is concerned with money flow patterns, trade activities and industrial production in a state. Analyzing and understanding these economic patterns require an in-depth scientific approach. This further involves interpretation of theories that are based on trends and data. No wonder, economists use economic graphs and charts to represent complex data in pictorial format.
What is Economics?
In simplest terms, economics is the study of how people choose to use limited resources. The term “resources” refers to things such as money, time, people, talents or knowledge, land, buildings, equipment, tools, crops, minerals, or virtually any other product or service of which there is a limited supply. Thus, economics is the study of the ways in which people make important choices every day regarding how to acquire, sell, and use things of which there is a limited supply.
