Relationship To Market Structure
This concept is useful in determining the likely market structure of a market. For instance, if the minimum efficient scale is small relative to the overall size of the market (demand for the good), there will be a large number of firms. The firms in this market will be likely to behave in a perfectly competitive manner due to the large number of competitors.
Read more about this topic: Minimum Efficient Scale
Famous quotes containing the words relationship to, relationship, market and/or structure:
“Women, because of their colonial relationship to men, have to fight for their own independence. This fight for our own independence will lead to the growth and development of the revolutionary movement in this country. Only the independent woman can be truly effective in the larger revolutionary struggle.”
—Women’s Liberation Workshop, Students for a Democratic Society, Radical political/social activist organization. “Liberation of Women,” in New Left Notes (July 10, 1967)
“Poetry is above all a concentration of the power of language, which is the power of our ultimate relationship to everything in the universe.”
—Adrienne Rich (b. 1929)
“A sentimentalist, my dear Darlington, is a man who sees an absurd value in everything, and doesn’t know the market price of any single thing.”
—Oscar Wilde (1854–1900)
“Just as a new scientific discovery manifests something that was already latent in the order of nature, and at the same time is logically related to the total structure of the existing science, so the new poem manifests something that was already latent in the order of words.”
—Northrop Frye (b. 1912)