Early economic research focused on the difference between price and non-price based competition, while modern economic theory has … See more

Empirical observation confirms that resources (capital, labor, technology) and talent tend to concentrate geographically (Easterly and Levine 2002). This result reflects the fact that … See more

Monopoly
Monopoly is the opposite to perfect competition. Where perfect competition is defined by many … See more

Competition is generally accepted as an essential component of markets, and results from scarcity—there is never enough to satisfy all conceivable human wants—and occurs … See more

Perfect competition
Neoclassical economic theory places importance in a theoretical market state, in which the firms and market are considered to be in perfect competition. Perfect competition is said to exist when all criteria are met, which is … See more

Competitive equilibrium is a concept in which profit-maximizing producers and utility-maximizing consumers in competitive markets with freely determined prices arrive at an equilibrium price. At this equilibrium price, the quantity supplied is equal to the … See more

In his 1776 The Wealth of Nations, Adam Smith described it as the exercise of allocating productive resources to their most highly valued uses and encouraging efficiency, … See more