Abstract
The last chapter explained the basic principles of the profit maximising theory of the firm on the assumption that a firm faced a given demand curve. The demand for a firm’s output will, however, depend on:
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1.
the market demand for the good that is produced, and
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2.
the state of competition in the market and the behaviour of rival producers. This is the first of four chapters which consider how different possible states of competition can affect a firm’s pricing and output behaviour. Markets can range from the case of perfect competition, analysed in this chapter, to pure monopoly, with a number of possible intermediate cases.
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© 1988 M.J. Rosser
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Rosser, M. (1988). Perfect competition. In: Microeconomics. Palgrave, London. https://doi.org/10.1007/978-1-349-19553-4_5
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DOI: https://doi.org/10.1007/978-1-349-19553-4_5
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-46297-3
Online ISBN: 978-1-349-19553-4
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