Final paper Essay Example | Topics and Well Written Essays - 2000 words - 4

Final paper - Essay ExampleA securities attention is said to be in sodding(a) disceptation when there atomic number 18 a large number of buyers and sellers perfectly aware of the market prices, and no firm is large enough to have any economic power all over the industry (Amacher & Pate, 2013). The two main characteristics of a perfect market are low barriers to entry and exit, i.e. any unsanded firm can enter the market because of no restrictions such as high setup cost, judicial barriers or any other. All the firms are earning normal profit as there is strong competition within the industry. Secondly, homogenous products are produced, i.e. all products are identical or standardized and are alters of separately other, thus sharing the same price as well (Amacher & Pate, 2013).An imperfect competition is where there are not many producers in the market and there is less competition as buyers and sellers are not fully aware of the prices so different prices exist for same pro duct in the market (Amacher & Pate, 2013). thither are three forms of an imperfect marketUnder this structure, there are few sellers as compared with perfect competition and the products produced are differentiated due to branding, which gives the producer a way to have his own determine policy and thus can earn more than normal profits (Amacher & Pate, 2013).There are a few suppliers in the market in this structure, and every supplier has a substantial control over the prices, and output produced because few suppliers control the entire supply in the market. There is strong rival awareness because of the interdependence of suppliers. There is a possibility of product differentiation as well as substitute products, and the price-output policy of each supplier depends upon the degree of homogeneity or heterogeneity (Amacher& Pate, 2013).There is a iodine seller or producer who controls the entire market. As he