Monopolistic competition is a market structure that falls between perfect competition and monopoly. In this type of market structure, there are many small firms producing similar but not identical products. Each firm has some market power due to product differentiation, but there are no significant barriers to entry, which means that new firms can enter and compete in the … [Read more...] about Top 15 Characteristics of Monopolistic Competition
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Top 15 Characteristics of Perfect Competition Market
Perfect competition is a theoretical market structure where a large number of small buyers and sellers interact in a market, all selling or buying a homogeneous product. In a perfectly competitive market, no single buyer or seller has the power to influence the price of the product, and the price is determined solely by the forces of supply and demand. Perfect competition … [Read more...] about Top 15 Characteristics of Perfect Competition Market
Top 13 Difference Between Balance of Trade and Balance of Payments
International trade is an essential component of the global economy. Countries trade with each other to obtain goods and services that they do not produce domestically or to obtain them at a lower cost than producing them domestically. Trade between countries is recorded in the balance of payments (BOP) and balance of trade (BOT) accounts. These accounts are critical to … [Read more...] about Top 13 Difference Between Balance of Trade and Balance of Payments
What is Equilibrium and Disequilibrium in Balance of Payments?
Equilibrium in the balance of payments refers to a situation where a country's total payments for imports of goods and services, and capital outflows, are equal to its total receipts from exports of goods and services and capital inflows. In other words, there is a balance between the country's outflows and inflows of foreign currency. Disequilibrium in the balance of … [Read more...] about What is Equilibrium and Disequilibrium in Balance of Payments?
7 Different Types of Disequilibrium in Balance of Payments
Disequilibrium in the balance of payments occurs when there is an imbalance between a country's payments to and receipts from other countries. The balance of payments is a record of all the financial transactions between a country and the rest of the world, including imports and exports of goods and services, capital flows, and financial transfers. If a country is … [Read more...] about 7 Different Types of Disequilibrium in Balance of Payments