Market structure Pure Competition

1. Classification of Market Structure

1.1. Market is a place where buyers and sellers meet and exchange goods or services. There are certain condition

1.1.1. Monopolistic Competition

1.1.2. oligopoly

1.1.3. Monopoly

2. Following characteristics

2.1. Many sellers

2.2. Low barriers to enter

2.3. Competitors products are identical

2.4. Buyers have perfect information

3. Objective

3.1. The objective of any firm is, produce the quantity of output that maximizes its economic profit.

3.1.1. Profit= Total Revenue (TA) - Total cost (TC)

4. Marginal and Average Revenue

4.1. Marginal revenue

4.1.1. Is the additional revenue per product

4.2. Average revenue

4.2.1. Is the revenue per product

5. Pure (Perfect) Competition