Competition And Market

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In the present investigation, the issues set forth in week 13 of Unit 6 are announced and at the framework of the microeconomics subject, these issues to be addressed is based on the market and competition, whether perfect and imperfect.

The applied method are bibliographic sources and virtual library books, to have a clear concept about what is going to be developed. An economic model that can be used by companies or businesses, offering products in which it can be offered or demanded. Finally, for greater understanding it will be closed with a conclusion and that texts have been based.


  • The connection was one of the inconveniences presented during the investigation.
  •  On the Internet there abounds a lot of information on the topics presented, sometimes it usually confuses the writer.

It is a related technique in the business world, where a link with the development of the entities is maintained. They are usually quantifiable and these are made through measurement tools. The group contains countless knowledge and skills that individuals characterize them and thus evaluate performance.

 The competition goes hand in hand with the analysis that is carried out in the institutions, such as the DAFO:

  • Weaknesses
  • Threats
  • Strengths
  • Opportunities

Through this technique, its rivals will be analyzed, it is a priority within the environment, seeing what products are profitable, seeing and being susceptible to the needs of people. Certain conditions such as:

• Sell at a unit price: adding a value that is not within the competitive sector, the quality of the product, design, customer service must be considered, since it is giving security to the customer, it is a primary point, communication and have a good image.

• The unit value must be lower than the total of the medium: costs are minimized, improving the quality and efficiency of the personnel, the operation of the different departments, carrying out the established procedures.

Types of competition

There are several ways in which economic agents manifest:

The market is the medium that has the high hierarchy to obtain profits, two key components such as:

• Product

• Geographic scope

According to the Ministry of Economy Competition Promotion Directorate (2004) the definition of product market is: a product or group of products and a geographical area in which it is sold, such that a hypothetical company, maximizing profit and isThe only seller of such products in that area can raise prices for a small, but significant and non -transitory amount above the prevailing levels. 

When a company acquires the right and control of the activity, little by little a perfect competition is integrated within the price of said sale a greater value and, on the other hand, the production would obtain the counterpart, lower. Being a benefit for the economic entity and those who consume it bring somewhat negative results because they have to cancel a higher cost and this is because of a reduced supply and below the demand curve within the monopoly.

It is a representation of those markets in which there are countless offers and plaintiffs, where the price is set according to the product sold or consumed, whose characteristics contains the sales article. The size of the companies plays a primary role and all have similar conditions and regulations to be able to access in the business world. Consumers have a point in favor, since they cannot exceed cost so that no one would buy.


  1. They buy voluntarily
  2. It is feasible and efficient to enter and leave the competitive environment
  3. Allow to adjust production to an extensive period
  4. They do not affect the prices of movements performed
  5. Objectives such as determining sales in a certain time are set, as a result of a benefit.

To flow correctly, a price or amount of equilibrium is generated and thus visualize the variability. Through this important data, the amount to be produced and calculates the costs of the same is reflected.

Not having determinants such as technology, there will be no place for an income in which it can reflect an additional total such as the opportunity cost, referring to the available resources, however, in a long period a surplus is obtained.

They offer a variety of products according to the tastes of each human being:

1. Monopoly: Those products have similarities, then their objective focuses on strategic objectives, as objective or subjective, focuses on competitive levels:

• Image

• Advertising expenses

• Propaganda

It focuses on the monopoly, there is an independence. They can be divided into categories, reversible and irreversible, the first is the decrease in values and finally it is a high cost.

two. Duopoly: As their name says, two companies compete and the individuals who consume the products of these entities have no alternative on them when acquiring them.

3. Oligopolist: It is characterized by having a small number of sellers and high buyers, when this law is met, it is called with this name, Oligopsonio. One of the main functions of this group is to compete and consist between signatures. Companies sign a prices agreement that will be set


Finally, this report can be concluded, with respect to the time of creating or constituting a company, a market analysis mustto the public and if this over time is sued, in case it was so, it will be high consumption. For the perfect competition this would choose a good style, a key point for it to flow correctThey are so innovative, it does not influence prices, but rather, the market, it is feasible for production to be by units and be approved by citizens. When the benefit is superior is produced by the marginal cost

For this to be imperfect on the other hand it differs by being mono-political, having an offering or provider of the article, here is variety and want to make differences, there are legal restrictions, that is, there are ticket barriers, but the costs are high. It sounds inefficient that values are changed by high hierarchy without consumers having access to them.


  • Cendejas, j. (2016). Microeconomics: Theory of perfect competition. 
  • Distance Institute of Andalusia. (s.F.). 
  • Jaime, n. (2009). Imperfect competition and market power.
  • Jiménez, a. (2013). Competition. 
  • Ministry of Economy Competition Promotion Directorate. (2004). Notes on competition policy. 
  • Navarro, a. B. (s.F.). Market analysis. 
  • Quiroa, m. (s.F.). Types of competition. 
  • Rodríguez, c. AND. (2013). In imperfect competition. 

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