When running a small business, decisions must be made to help ensure profit maximization and continued success. Understanding some of the basic economic principles at work behind the scenes can help ...

Perfect competition is a theoretical model with many buyers and sellers offering identical products. In this model, firms cannot influence prices and make zero long-term profit due to free entry and ...

No individual actor would have market power in a perfectly competitive market, argue economists Paul Krugman and Robin Wells in the second edition of their book "Economics." Under competitive market ...