click below
click below
Normal Size Small Size show me how
Perfect Competition
Term | Definition |
---|---|
Price taker | A firm that has to accept the price ruling in the market |
Homogenous | All products are the same irrespective of who makes them |
Allocative efficiency | The optimum allocation of scarce resources that best accords with the consumers’ pattern of demand |
Optimum output | The optimum allocation of scarce resources that best accords with the consumers’ pattern of demand |
Static efficiency | Efficiency at a point in time – includes allocative and productive efficiency |
Dynamic efficiency | Efficiency over time – new products, techniques and processes which increases economic growth |
Structural performance and conduct model | Individual performance depends ultimately on the industry structure where the variables in the model are structure, conduct and performance |