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Advantages and Disadvantages of Perfect Competition

Submitted by frndzzz on Sun, 10/22/2017 - 05:02

Some of the Advantages and Disadvantages of Perfect Competition are as follows. So let us check out some information on pros and cons of perfect competition to know more about it.

Advantages of Perfect Competition are :

  1. Perfect competition encourages efficiency.
  2. In perfect competiton firms operate at maximum efficiency.
  3. Consumer benefits, Consumers charged at lower price.
  4. Consumers are not exploited in perfect competition, they buys product or services at lower price.
  5. Resources are used more effectively.
  6. Due to high degree of competiton, perfect competition helps allocate resources to most effective use.
  7. Perfect competiton is responsive to consumer wishes.
  8. Price is equal to marginal costs.
  9. Normal profits can be made in long run in perfect competiton.
  10. In perfect competition same quality of products are supplied from all manufacturer.

Disadvantages of Perfect Competition are :

  1. Lack of product variety can be seen in perfect competiton.
  2. Insufficient profits for investment.
  3. In perfect competiton lack of competiton over product design and specification can be seen.
  4. In perfect competiton unequal distribution of income and goods is observed.
  5. No choice as goods are almost identical.
  6. No economies of scale.

Also find out advantantage & Disadvnatages of Monopoly which is related to perfect competition.

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What is Planned economy ? Advantages and Disadvantages of Planned Economy

Submitted by frndzzz on Fri, 03/15/2019 - 11:56

Find out Advantages and disadvantages of planned economy (command economy) listed below. So let us check out points on advantages and disadvantages to know more about planned economy. This type of economy system is controlled by governement. In Planned economy, government decides how much is produces, what to produced, the methods of the production and the price of goods or services.

What is Market economy ? Advantages and Disadvantages of Market Economy

Submitted by frndzzz on Fri, 03/15/2019 - 11:40

Check out Advantages and disadvantages of market economy (capitalism) given below. So let us find out some points on advantages and disadvantages to know more about market economy. This type of economy is nearly free fro governement interference, Economy is based on private ownership where individual control the production, distribution and sales of goods and services.

Advantages and Disadvantages of International Trade

Submitted by frndzzz on Fri, 05/18/2018 - 02:16

Check out Advantages and Disadvantages of International Trade discussed below. So let us find out some information on advantages and disadvantages to know more about International Trade. It is a trade between nations in the form of imports as well as exports. International trade can be considered one of the important souce of revenue in the developing countries. Trade between countries is the exchage of both services and goods among the countries of the world economy.

Advantages and Disadvantages of Niche Marketing

Submitted by frndzzz on Thu, 01/17/2019 - 02:12

Advantages and Disadvantages of Niche Marketing are as follows, So let us check it out one by one.

Advantages:

The following are the advantages of niche marketing :

1. Less Competition

Niche marketing has comparatively quite less market competition for the viable competitors purchasing services or products.It helps business to build their brand loyalty.

Purpose of Niche Marketing

Submitted by frndzzz on Tue, 12/31/2019 - 07:03

Points on purpose of niche marketing are listed below. Niche marketing focuses on niche area of any market segment or products and services, faces less competiton and more chances of customer retention. Niche market products or services are more effective at the initial state of product life cycle. You might also like advantages & disadvantages of niche marekting for more information.

Advantages and disadvantages of Advertisement in Points

Submitted by frndzzz on Sat, 04/28/2018 - 01:55

Check out Advantages and Disadvantages of Advertisement in Points which are discussed below. So let us find out some points on advantages and disadvantages to know about advertisement.

Advantags of Advertisement in points are :

Advertisemet can be used to build brand Loyalty.

Advertisement creates ground for personal selling.

Advertisement helps to communicate information to the people.

It also helps to educate people.

Advertisement creates image for the products of services in the market.

It helps to build goodwill.