- Example of perfect competition – Economic Market Situation
Perfect competition is a market situation, where no participant is large enough to command prices of homogenous products. This is a market environment which is dominated by many players, which in this case only take up a small market share. In the real world situation, many industries are characterized by perfect competition (Surhone et al, 2010). Economic Market Situation.
This is despite the rise of huge multinationals which have grabbed market command. A good example of an industry experiencing perfect competition is the Brazilian retail industry. In this case, the retail industry is overwhelmed by small companies which only take up less than 5% of market share thus demonstrating the existence of perfect competition. Economic Market Situation. The fish market, fruit and vegetable vendors also demonstrate a scenario of perfect competition (Mankiw, 2011). This is based on the few barriers for entry and exit thus leading to many players.
- The phrase that the spice of life is what wastes resources is very evident in human society. This is a vividly explained in the nature of human needs, whereby people are never satisfied regardless of what is at their disposal. With this in mind, people keep yawning for more thus leading to wastage of resources as well as variations in process. It should however been noted that people can not live without seeking to fulfill their desires and boosting spice of life thus raising the concept of price (Miller, et al, 2010). Economic Market Situation.
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Factor, Marginal Cost, General Equilibrium Theory, Marginal Revenue Productivity Theory of Wages. New York: McGraw Hill Press.
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