Different Types Of Market Forms

1809 Words Nov 3rd, 2014 8 Pages
INTRODUCTION
IN THE BELOW PROJECT I HAVE STUDIED AND GIVEN A REPORT ON DIFFERENT TYPES OF MARKET FORMS THEIR CHARACTERSTICS AND HOW THEY ATTAIN EQUILLIBRIUM OR MAXIMISE THEIR PROFIT IN SHORT RUN AND LONG RUN EQUILLIBRIUM .
THE PROJECT HAVE BEEN RESEARCHED UPOMN BY THE METHODS OF BOOKS AND CERTAIN TOPICS ONLINE FRON THE INTERNET

Perfect competition

Characteristics of perfect competition
1. There are large no of sellers i.e. producers in the market /industry producing a commodity
2. The firms or sellers produce exactly similar products . Hence, we can say that under perfect competition there is production of homogeneous products.
3. With large of sellers there are also large no of buyers in the market
4. The sellers under this market are price takers bcoz of large no. of sellers. Therefore, there is no particular seller have influence on market price i.e. price of the commodity is taken as given
5. There are no barriers to the entry or exit of such kinds of markets

CONCEPT OF REVENUE
Total revenue = P×Q
The amount earned by selling the q no of products at certain price p where p is the price of commodity and q is the quantity sold
Average Revenue
It is the revenue earned per unit of output sold
A.R = T.R./Q P×Q/Q =P
HENCE A.R =P
Marginal Revenue
It is the increase in total revenue obtained by each additional unit of good / output M.R. =T.R.(n+1) - T.R.( n)

Profit maximization
The firms profit…
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