Monopoly
The word monopoly has been derived from the combination of two words i.e., ‘Mono’ and ‘Poly’. Mono refers to a single and poly to control. In this way, monopoly refers to a market situation in which there is only one seller of a commodity. There are no close substitutes for the commodity it produces and there are barriers to entry....
Perfect competition
Introduction Perfect Competition refers to that market situation in which there are large number of buyers and sellers of homogenous product. The price of such product is determined by the industry with the market forces of demand and supply. All firms sell their product at this price, thus there is only one price which prevails in the market. In words...
Long run costs
In the long run, all the factors of production used by an organization vary. The existing size of the plant or building can be increased in case of long run. There are no fixed inputs or costs in the long run. Long run is a period in which all the costs change as all the factors of production are variable....
Short run costs
Short Run costs refers to a certain period of time where at least one input is fixed while others are variable. In the short-run period, an organisation cannot change the fixed factors of production, such as capital, factory buildings, plant and equipment, etc. However, the variable costs, such as raw material, employee wages, etc., change with the level of output....
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