introduction to principles and practices of economics
this book provides a foundational overview of the key concepts, principles and real-world applications of economics. it introduces learners to both microeconomics, exploring topics such as supply and demand, market structures, opportunity cost, economic systems ,fiscal policy and globalization each topic is designed to build your understanding of how economies function and how economic decisions affect individuals, business, and governments. ideal for beginners, this resource combines theoretical insights with practical examples to help students apply economic thinking in everyday life.
market structures refers to how different industries are organized are organized based on the number of firms, type of products and easy of entry into the market
Types of market structures
a)perfect competition
characteristics; 1)many small firms
2)no control over price
3)easy entry/exit
4)consumers have a perfect information
b)monopolistic competition
characteristics; 1)product differentiation through branding quality etc
2)firms compete on non-price factors
3)some control over price
c)oligopoly
characteristics;1)independence btw firms
2)possibility of collusion or price wars
3)high barriers due to cost or regulations
d)monopoly
characteristics;1)single seller
2)high prices and restricted output
3)lack of competition may reduce efficiency