TOPICCost, Price, Competition, Monopoly & Profit.

PRESENTED BY:-

- Amol Gajghate.- Manish Narsule.- Akash Khandare.

COSTMeaning:- In Business & Accounting cost is the monetary value that a company has spent in order to produce something.

- Cost denotes the amount of money that a company spent on the creation or production of goods or services.

TYPES OF COST

- Real Cost - Opportunity Cost - Money Cost a) Explicit b) Implicit - Accounting & Economic Cost - Fixed & Variable Cost

PRICE

Definition :-

Price, the amount ofmoneythat has to be paid to acquire a given Product. Insofar as the amount people are prepared to pay for a product represents itsvalue, price is also a measure of value.

Meaning:-

In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.

COMPETITIONMeaning :- In economics, competition is the rivalry among sellers trying to achieve such goals as increasing profits,MARKETshare, and sales volume by varying the elements of theMARKETINGmix: price, product, distribution, and promotion.

TYPES OF COMPETITION

Perfect competition OligopolyMonopolyMonopolistic competition

1 Perfect competition:- - Consist of small suppliers and customers. - Free entry and exit. - All supply identical products. - Goods sold at market price only.

2 Oligopoly:-

- Small number of suppliers supplying identical products. - Price increases and decreases by everyone at same time to maintain stability.

3 Monopoly:-

- One supplier of product. - Supplier can charge whatever he wishes. 4 Monopolistic competition:-

- Large number of buyers and sellers. - Free entry and exit. - Product differentiation. - Selling cost.

MONOPOLYDefinition:- Monopoly is a market situation in which there is only one seller who controls the entire supply of the product. - The word monopoly is derives from the two Greek words monos which mean single and polus mean seller.

Features:-

Single seller.Price maker.Entry barriers.Control over the market supply.Selling cost not incurred.Industry firm are same.Substitutes.Profit maximization.Profit discrimination.Downward sloping demand curve.

Simple MonopolyDiscriminating MonopolyPrivate MonopolySocial MonopolyJoint MonopolyNatural MonopolyLegal MonopolyTechnological MonopolyTYPES:-

Advantages of Monopoly:-

Ideal structure of MarketEncourages research and developmentEncourages innovation

Disadvantages of Monopoly:-

Leads to exploitation of consumerPotential for supply is limmitedConsumer choice is limited

PROFITDefinition:- Profit is reward earned by a businessman for his contribution to the process of production.

PROFIT = TOTAL REVENUE TOTAL COST

CONCEPTS OF PROFIT

Normal Profit.Super Normal Profit.Profit Maximization.

Any Question............?

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