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)
“The relationship between mother and professional has not been a partnership in which both work together on behalf of the child, in which the expert helps the mother achieve her own goals for her child. Instead, professionals often behave as if they alone are advocates for the child; as if they are the guardians of the child’s needs; as if the mother left to her own devices will surely damage the child and only the professional can rescue him.”
—Elaine Heffner (20th century)
“Writing ought either to be the manufacture of stories for which there is a market demand—a business as safe and commendable as making soap or breakfast foods—or it should be an art, which is always a search for something for which there is no market demand, something new and untried, where the values are intrinsic and have nothing to do with standardized values.”
—Willa Cather (1876–1947)
“The syntactic component of a grammar must specify, for each sentence, a deep structure that determines its semantic interpretation and a surface structure that determines its phonetic interpretation.”
—Noam Chomsky (b. 1928)