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 firms are embedded in inter-firm relationships with networks of suppliers, buyers … 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 … 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

Perfect competition
Neoclassical economic theory places importance in a theoretical market state, in which the firms and … See more

Monopoly
Monopoly is the opposite to perfect competition. Where perfect competition is defined by many small firms competition for market share in … 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