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Home Price and Output Determination Under Monopolistic Competition Historical Background of Monopolistic Competition

 

Historical Background of Monopolistic Competition/Imperfect Competition:

 

Before 1933, the price analysis was studied under two market models:

 

(1) Perfect Competition and (2) Monopoly.

 

In perfect competition model, it was assumed that there were large number of firms producing homogeneous product. In the case of monopoly, there was only one seller of a product. Both these models were thus polar extremes and were considered satisfactory for the market price analysis in economic theory.

 

In the year 1933, Mrs. Joan Robinson of Cambridge University in England and Edward Chamberlin of Harvard University in America introduced a third market model. It was called Imperfect Competition by Mrs. J. Robinson and Monopolistic Competition by Chamberlin.

 

The third market model called monopolistic competition or imperfect competition contains larger elements of competitive model and a fewer elements of monopoly model. It is thus a hybrid of monopoly and competition.

Relevant Articles:

Historical Background of Monopolistic Competition
What is Monopolistic/Imperfect Competition
Characteristics of Monopolistic/Imperfect Competition
Short Run Equilibrium Under Monopolistic/Imperfect Competition
Equilibrium Price and Output in the Long Run Under Monopolistic/Imperfect Competition
Wastes of Monopolistic/Imperfect Competition

Price and Output Determination Under Oligopoly

Pricing and Output Determination Under Duopoly
Three Important Models of Oligopoly
 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money
 

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