Flashcards
Micro Economics Flash Cards
Cards in this deck (3)
- 1Paradox of Value-The Value of Use refers to the usefulness of a commodity whereas the Value of Exchange refers to the rate of exchange of a commodity as compared to the other.
- 2Monopolistic Competition* It is a realistic market situation. It is a combination of Monopoly and Competition.
*It has fairly a large number of sellers and buyers.
*The products sold by the sellers and similar, but not identical. They are close substitutes.
*There is product differentiation. the products are slightly differentiated. the products are neither homogeneous nor remote substitutes.
*The sellers can follow their own price output policy because of product differentiation. But, they have limited monopoly power. - 3Perfect Competition.*It is the ideal market structure.
*It has a large number of buyers and sellers.
*The products sold by them are similar or homogeneous. Each product is the perfect substitute for each other.
*There is no product differentiation as all the products are similar or identical.
*The price of the commodity is determined by the market demand and market supply. an individual buyer or seller cannot influence the market price.
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- 12th Grade Economics Flashcards on Micro Economics Flash Cards, created by nish.peekaboo on 19/02/2014.
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- nish.peekaboo
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