A literature review is a critical analysis of the existing research on a particular topic. It is an essential part of any research project as it helps to contextualize the research and situate it within the larger body of knowledge on the topic. Writing a literature review can be a challenging task, especially for those who are new to the process. However, with some careful planning and organization, it is possible to write a comprehensive and well-written literature review. Here are some tips to help you get started:
Define your research question or topic: The first step in writing a literature review is to define the research question or topic that you are interested in. This will help you to focus your review and ensure that you are only including relevant literature.
Search for relevant literature: Once you have defined your research question or topic, the next step is to search for relevant literature. This can be done through a variety of sources, such as databases, libraries, and online sources. Make sure to search for both primary and secondary sources, as well as both published and unpublished materials.
Read and evaluate the literature: As you begin to read and evaluate the literature, it is important to take good notes and keep track of your sources. This will help you to remember important details and make it easier to write your review. As you read, consider the following questions:
What are the main arguments or findings of the study?
What methods were used to collect the data?
Are the results supported by the data?
What are the limitations or weaknesses of the study?
Organize the literature: Once you have read and evaluated the literature, it is important to organize it in a logical and coherent manner. One common way to organize a literature review is to group the studies by theme or topic. Alternatively, you can organize the literature chronologically or by research method.
Write the review: Once you have organized the literature, it is time to begin writing your review. Start by introducing the research question or topic and providing some background information. Next, summarize the main findings and arguments of the studies you have reviewed. Finally, conclude your review by discussing the implications of the literature and any future directions for research.
In summary, writing a literature review requires careful planning and organization. By defining your research question, searching for relevant literature, reading and evaluating the literature, and organizing and writing your review, you can produce a comprehensive and well-written review that adds to the existing body of knowledge on your topic.
Perfect Competition as the Ideal Market Structure Essay Example
Freedom of entry means that a new firm is free to start production if it so desired. Companies make just enough profit to stay in business and nothing more. The first two criteria homogeneous products and price takers are far from realistic. They make enough to cover their basic costs and still have some left over. Since there is only one US dollar, one British pound and one euro, the product is homogeneous.
Some economists are highly critical of the neoclassical school's reliance on perfect competition. Perfect competition is merely a theoretical ideal, based on assumptions that rarely hold in the real world. This means the individual firm will face a horizontal demand curve. We do not find price fluctuations. In long run, all factors of the firm can be varied, therefore new firms can enter and existing firms can leave the industry. However, for the second two criteria, information and mobility, the global technological and commercial transformation is improving the flexibility of information and resources.
Ease of market entry or exit In a perfectly competitive market structure, production and start-up costs are low while the demand for commodities is high. For example, there was a proliferation of sites offering similar services during the early days of social media networks. The total demand of the market is the sum of the quantity demanded by individual buyers. At the same time, sellers are few and free to participate in the market without any barrier. These facts explain why competition often becomes imperfect. A perfectly competitive firm is one whose output is so small in relation to market volume that its output decisions have no perceptible impact on price. What does price-taking imply from the perspective of a buyer? It is impossible for the seller to hold a price competition with the intention of seizing the market because the market price is something that each producer must accept.
Yet, for the second two criteria information and mobility the global tech and trade transformation is improving information and resource flexibility. It can be challenging for potential competitors to enter a marketplace that one company dominates. Perfect competition characteristics Below we analyze the main characteristics of perfect competition. John Law : economic theorist and policy-maker. Before the things stated above are shown and explained, two ways will be formulated to determine profit maximization by a company. Each customer and each seller is independent in making decisions. A long-run supply curve, just like a short-run supply curve, shows the total quantity that will be supplied in a market at different prices; but unlike the long-run supply curve, it shows the quantity supplied after all long-term changes, including entry and exit of firms, have been taken into account.
What Is Perfect Competition? (Plus Its Characteristics)
Productive efficiency is achieved when the firm is producing at the minimum point of average cost. Translated by Henry Higgs. Marginal revenue MR equals average revenue AR which is also equal to price. In monopsony, the buyer exercises majority control over the purchase of a good or service, which gives him more power during negotiations. Therefore if the firm supplies more than the demand this leads to price fall in the market.
Perfect Competition: Definition, Graphs, short run, long run
At that price, market demand is equal to the market supply. The key condition for a competitive market, as discussed above is price taking. A perfectly competitive market is a hypothetical market where competition is at its highest possible level. There are substantial barriers to entry that prevents competition from entering the industry including 1 large capital requirements, exceeding the financial resources of potential entrants. All the above characteristics associated with monopoly restrict other companies from entering the market.
Also, there is no incentive for any firm to set a price below P1. In this sense, economic efficiency referred to as allocative efficiency. One reason is that consumers are not aware of all the prices being asked for a given item. Governments do this to guarantee the production and supply of electricity because they cannot tolerate disruptions that can come from free market forces. In a situation where companies mutually compete, they may create agreements to share the market by restricting production, leading to supernormal profits. However, the higher price creates profits, and profits attract entry in the long run. In turn, they will switch to competitors, putting the original company out of business.
Perfect Competition: Characteristics, Examples, Features, and Benefits
. Now, let demand shift to the right. No monopolies exist in a market with pure competition, and prices depend on demand, meaning sellers and buyers don't dictate them. Imperfect competition encourages innovation because competitors try to outmaneuver each other to get a more significant market share. Simultaneously, the cost curves will shift upward due to an increase in factor prices. An industry or market is said to be operating under perfect competition if the following conditions are satisfied: 1.
Advantages and Disadvantages of Perfect Competition
Limiting consumer choices, because the goods produced by companies are one hundred percent the same, thus making consumers have limited choices to determine the goods to be consumed. In addition, it is also easy to get out of the market. Contestable markets is a market in which the existing firm makes only normal profit, as it cannot set a higher price without attracting entry. In this type of competition, sellers consider the price charged by their competitors and ignore the impact of their own prices on their competition. The demand has increased from OM quantity to OM 1.
For example, we only need to look at eBay as an example. AR lies above MR. Also, as supply and demand conditions change in individual markets, resources are assumed to move between markets until equilibrium is once again reached. If price is greater than the equilibrium price, some sellers would not be able to sell the commodity. Perfect competition, or pure competition, is a market structure where multiple buyers and sellers initiate the buying and selling mechanism. This type of market is characterized by factors such as the sole claim to ownership of resources, patent and copyright, licenses issued by the government, or high initial setup costs. The marginal revenue curve MR has a fixed relationship with the average revenue curve.