Id 0302 Name: Nabiev Uktam Chapter 14 What is the definition of perfectly competitive market?



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No Unique Price Behaviour Model. Under an oligopoly, firms want to operate independently and maximize profits on the one hand, and cooperate with competitors to eliminate uncertainty on the other. Depending on their motives, situations in real life may differ, which makes it impossible to predict the pricing model among firms. Firms may compete or collude with other firms, which may lead to different price situations.
Oligopoly firms to cooperate
Oligopoly is a market structure in which a few firms dominate the industry; it is an industry with a five firm concentration ratio of greater than 50%.
How are antitrust laws used to foster competition?
When you hear the word antitrust, you might think of Microsoft, IBM, and Ma Bell—or, if you look at historical examples, Standard Oil and American Tobacco. As a small or medium business, you might think that antitrust law is an issue you don't need to worry about. Don't fall into this trap. All businesses are subject to the same laws.
Moreover, the forces of globalization and technology are pushing small and large businesses into complex collaborations that may require careful negotiation to stay within the law. Antitrust laws administered by the Federal Trade Commission (FTC) and the Department of Justice are designed to encourage competition. And it casts a shadow over agreements that tend to discourage competition, as well as the exchange of information about customers, prices or discounts.
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