Market structures in nigeria
These somewhat abstract concerns tend to determine some but not all details of a specific concrete market system where buyers and sellers actually meet and commit to trade. This comes from the idea that the characteristics of a perfectly competitive market relate to the indicators themselves.
But how would a perfectly competitive situation be described?
Structure of the stock market
In theory, each agent must simply accept that price. Perfect competition occurs when the market clears at a price equal to the marginal cost of production. What are the various types of markets structures and their effect on economic growth? Natural monopolies usually exist outside the scope of such interest because they are recognized as being able to efficiently provide a certain good or service and dismantling them may do more harm to the economy than good. This is not to say that the protection of consumers is not tied in some way to Competition Law or policy ipso facto but they are excluded since they go beyond the scope of this paper. Part XIII grants the Commission supremacy over other government agencies that may have related dealings with a subject entity or matter of competition law, the power to determine by fiat the industries that are subject to competition law and the jurisdiction of the Commission, among other things. It is often used by governments and other organizations, such as private sector businesses, to appraise the desirability of a given policy. The foregoing are what would see to the realization of a perfectly competitive and efficient market. The theory of costs analyses the behaviour of cost curves in the short run and the long run and arrives at the conclusion that both the short run and the long run curves are U-shaped but the long-run cost curves are flatter than the short-run cost curves. For example, in an important study that exploits cross-country and cross-industry differences, Rajan and Zingales conclude that market structure development helps nations surmount financial and moral hazard and adverse selection problems and hence reduces the costs of external finance to the nations. To identify the various types of markets structures and their effect on economic growth. Nigeria has had a much different history and a different institutional development path and such a framework would likely not succeed in achieving desired growth unless it is followed with market enhancing policy per the issue raised above.
A competition policy is necessary for Nigeria but constructive thought must be put into how it will be applied fairly and efficiently.
General Equilibrium Theory: An Introduction, op. Cf, : Arowolo, D.
The Nature of the Firm, at p. If all individuals face the same prices for commodities, what is true for two individuals is also true for n individuals. When this does not happen, firms are said to possess market power. There are numerous firms selling the same products; iii.
Shares in nigeria
Markets involve goods and services and those goods come from an antecedent process-production or manufacture by a firm. Evidence from both single-country and cross-country studies suggests that economies with more developed market structure begin to grow earlier, attain higher growth rates, and achieve higher levels of per capita income than countries with less developed market structures. When this does not happen, firms are said to possess market power. Nigeria has had a much different history and a different institutional development path and such a framework would likely not succeed in achieving desired growth unless it is followed with market enhancing policy per the issue raised above. Regulation can pursue different types of objectives. The first component refers to a set of government measures that enhance competition or competitive outcomes in the markets, such as relaxed industrial policies, liberalized trade policy, conducive entry and exit conditions, reduced controls in the economy and greater reliance on market forces. Some types of market structure may be described using several recurrent types of descriptive organizational mechanism which may or may not dominate any particular market over time or at particular points in time, such as; Monopolistic competition , a type of imperfect competition such that many producers sell products or services that are differentiated from one another e. Generally, accurate application of cost theory and proper market structure identifies choices that increase welfare from a utilitarian perspective. According to this view, well-developed market structures especially those imbued with rights that protect investors do promote the efficient allocation of capital to projects with high rates of return, in turn stimulating savings, investment, and economic growth. That world assumes large numbers of participants in all markets, no public goods, no externalities, no information asymmetries, no natural monopolies, complete markets, fully rational economic agents, a benevolent court system to enforce contracts, and a benevolent government providing lump sum transfers to achieve any desirable redistribution. The Nigerian Ministry of Science and Technology has presented a roadmap for the creation of National Innovation Systems in the past but little has been done about integrating them with the commercial environment. It is a technique that is used to determine options that provide the best approach for the adoption and practice in terms of benefits in labor, time and cost savings etc.
based on 10 review