Oligopoly

This refers to the market structure dominates by large few firms. The number of sellers (firms) is small enough for other sellers to take account of each other i.e. if …

Monopolistic Competition

This is a form of imperfect competition which lies between the extremes of perfect competition and monopoly and includes elements from both markets. Examples include: restaurants, hair dressers etc Characteristics …

Monopoly

Monopolies are usually associated with economies of scale because of the large size of the market controlled by the firm. Economies of scale imply lower unit’s costs of production. It …

Perfect Markets

Perfect market is a market with many buyers and sellers where nobody can determine the price of goods or services. Characteristics Large number of buyer and sells where each individual …

Mergers and Acquisitions

Mergers occur where two firms agree mutually to joint their operations together. While an acquisition occurs when a firm called a predator decides to take over another firm referred to …

Economies of Scale

In the long run, all the input into production processes are variable so the problems associated with diminishing returns to the variable factors do not arise. The law of diminishing …

Optimum Seize of a Firm

This is the level of output at which total profit is at maximum. It is the best or the most efficient size of a firm when the long run average …

The Theory of Cost

It helps in understanding the concept of cost. The following are necessary: Opportunity Cost Assuming full resources allocation and employment in production of good and services increasing the production of …

Production Function

This is a technical relationship between the output of good and the input required to make these goods. The function may take the form of an equation, a table or …