THE ECONOMICS OF

Presenter: Shiela Mae M. Mapalo

COMPETITION

Is an inescapable fact of business

life. Any product or services
offered by a firm will find direct
and/or indirect competition from
similar and dissimilar products or
services.
ECONOMICS OF COMPETITION

Is a condition where different

economic firms seek to obtain share
of a limited good by varying the
elements of the marketing mix: Price,
Product, Promotion, and Place.
PERFECT COMPETITION

A market which exhibits the following

characteristics in its structure is said to
show perfect competition:
MONOPOLY
Monopoly is the absence of competition.
There is only one producer of a
commodity that does not have close
substitute.
OLIGOPOLY
An Oligopolistic industry is characterized
by a small number of firms where the
actions of any individual sellers affect the
rest.
MONOPOLISTIC COMPETITION

Characterized by the presence of many

sellers producing goods which are
substitute for one another.
NON-PRICE COMPETITION
Non-price competition involves ways that
firms seek to increase sales and attract
custom through methods other than
price. Non-price competition can include
quality of the product, unique selling
point, superior location and after-sales
service.