This short revision video looks at aspects of dynamic efficiency in markets.
Dynamic efficiency occurs over time and is strongly linked to the pace of innovation
within a market and improvements in both the range of choice for consumers and
also the performance / reliability / quality of products.
within a market and improvements in both the range of choice for consumers and
also the performance / reliability / quality of products.
Dynamic efficiency gains are often to be see in monopolistic competition and
oligopolistic competition - in the latter case, where there are sufficiently large
number of scaled businesses to earn and re-invest supernormal profits and
where there are also many smaller firms perhaps better able to be innovative in
niches within an industry.
oligopolistic competition - in the latter case, where there are sufficiently large
number of scaled businesses to earn and re-invest supernormal profits and
where there are also many smaller firms perhaps better able to be innovative in
niches within an industry.
No comments:
Post a Comment