Monopolistic competition is a market structure where many companies sell products that are similar but not identical. It
Tag: firm theory
profit satisficing
Profit satisficing is an economic theory where businesses aim to earn a satisfactory level of profit instead of
Prisoner’s dilemma
The Prisoner’s dilemma is a classic model in game theory. It demonstrates why two parties may choose not
concentration ratio
The concentration ratio measures the level of market concentration. It shows the share of total industry production controlled
profit maximisation under monopoly
A monopoly maximizes profit by following the MR = MC rule (Marginal Revenue equals Marginal Cost). However, because
collusive oligopoly
A collusive oligopoly happens when companies in a market work together instead of competing. By cooperating, they aim
non-collusive oligopoly
A non-collusive oligopoly exists when a small number of firms operate in a market and compete independently. There
long-run equilibrium under perfect competition
Long-run equilibrium in a perfectly competitive market occurs when all production factors can change, and firms earn only
short-run equilibrium under perfect competition
In a perfectly competitive market, a firm achieves its short-run equilibrium at the level of output where Marginal
game theory
Game theory is the study of how people or companies make decisions when the outcome depends on the