Search results
Results From The WOW.Com Content Network
Oligopolies are another form of imperfect competition market structures. An oligopoly is when a small number of firms collude, either explicitly or tacitly, to restrict output and/or fix prices, in order to achieve above normal market returns. [13] Oligopolies can be made up of two or more firms.
trade through markets from sale of one type of output for other, more highly valued goods. [7] Market incentives, such as reflected in prices of outputs and inputs, are theorized to attract factors of production, including labor, into activities according to comparative advantage, that is, for which they each have a low opportunity cost.
An incentive is a powerful tool to influence certain desired behaviors or action often adopted by governments and businesses. [4] Incentives can be broadly broken down into two categories: intrinsic incentives and extrinsic incentives. [5]
An economic development incentive is known as "cash or near-cash assistance provided on a discretionary basis to attract or retain business operations." [1] These benefits principally encompass tax and economic incentives provided by federal, state, or local governmental bodies.
A market can be organized as an auction, as a private electronic market, as a commodity wholesale market, as a shopping center, as complex institutions such as international markets and as an informal discussion between two individuals. Markets vary in form, scale (volume and geographic reach), location and types of participants as well as the ...
All other types of competition come under imperfect competition. Monopolistic competition, a type of imperfect competition where there are many sellers, selling products that are closely related but differentiated from one another (e.g. quality of products may differentiate) and hence they are not perfect substitutes. This market structure ...
For example, in the US at one time it was cheaper to buy gasoline than bottled water. [7] All countries use subsidies via national and sub-national entities through different forms such as tax incentives and direct grants. Likewise, subsidies have an economic influence on both a domestic and international level.
Market power within competition law can be used to determine whether or not a firm has unfairly manipulated the market in their favour, or to the detriment of entrants. The Sherman Antitrust Act of 1890 under section 2 restricts firms from engaging in anticompetitive conduct by utilising an individual firm's power to manipulate the market or ...