Chapter 2 General Analysis of Typical Market Structures

Abstract

The general question to be answered in this chapter is how individual economic agents behave in a given market structure and what is the overall picture that emerges? This question is quite difficult to answer. We cannot directly deduce either the individual’s behaviour or the overall picture from a particular premise. Our critical analysis must pursue an indirect route. This indirect method, as it will be applied here, is new in the field of economic theory research. Therefore, to begin with we ought to describe its basic principles without reference to the individual subject under investigation.