Revenue
in different types of market
Pure
competition – in
this market every manufacturing produce same types of goods & services.
There are lots of manufacturing units available in the market. Demand &
supply balance the market and fix the price in the market. The price is also
same in the whole market.
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| Revenue in Pure Competition |
Monopoly
or imperfect competition
– in this market, only one manufacturing units available in the market and
market demand is already given. Manufacture adjust its price its own. Average
revenue is down in the slope and marginal revenue stand below its AR. Company
know the demand and they sell the more quantity on a lower price that way MR
below the AR.
 |
| Revenue in monopoly |
Oligopoly – in this market, there are few
manufacturing units and also their behaviour influences the other unit’s
policy. If a company increases their price then other company not follows the
same because consumer always prefer to buy a cheaper/low price things. In this
market AR & MR are down in slope. MR put down or below the AR line but they
are not in direct down but there are lot of kinks in the line.
 |
| Revenue in Oligopoly |
