W Essay Example | Topics and Well Written Essays - 750 words - 1

W - Essay Example Oligopoly involves a market with a limited number of sellers. Monopsony is market with several sellers and a single buyer. Chamberlin’s most outstanding contribution to imperfect competition is the theory on monopolistic competition. This theory provides that there are several consumers and producers in a market and no one has total control of the market price. There is an existence of non-price differences between products with limited barriers to entry and exit. In this market, the producers also have some level of control over prices. Chamberlin conceived production differentiation, which describes the ability of producers to charge different prices for the same product in different markets (Chamberlin 519). Robinson’s contribution to imperfect competition centers on monopsony, which was conceived in her book ‘The economics of imperfect competition’. The term is often associated with the purchase of labor where the employer possess the power to set wages which allows them to pay the workers less than their marginal productivity (Helpman 54). Alfred Marshall was an economist and the founder of neoclassical economics. Marshalls book the ‘Principles of Economics’ introduced the concepts of integrating demand, supply, cost of production and marginal utility. This book was widely used because it introduced radical changes on how to teach economics. Unlike other books, which were written is solely in paragraphs, the book incorporated diagrams to allow for better understanding. Marshall’s concepts made a significant contribution to neoclassical economics. Among these contributions is the analysis of price. According to Marshall, consumers act rationally and seek to maximize utility while producers seek maximum rewards. The equilibrium price and quantity can be determined by drawing a demand and supply curve. His analysis of price emphasized the cost of production as a