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Topic: Business
Number of pages / Number of words: 6 / 1483
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At the prices lower than P, this will force competitors to cut their prices and as a result there will be very little to be gained. Therefore the best option for firms in an oligopoly is to lie at point E which is the point of equilibrium.

Perfect Competition

Perfect competition is another example of a market structure...


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This describes a market in which no buyer or seller has power in the market. In general a perfectly competitive market is characterized by the fact that no single firm has influence on the price of the product it sells. Because the conditions for perfect competition are very strict, there are few perfectly competitive markets...


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