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TOPIC

Cost, Price,
Competition,
Monopoly & Profit.

PRESENTED
BY:- Amol Gajghate.
- Manish Narsule.
- Akash Khandare.

COST
Meaning: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.

COMPETITION
Meaning :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
1.
2.
3.
4.

Perfect competition
Oligopoly
Monopoly
Monopolistic 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.

Definition:-

MONOPOLY

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:1.Single

seller.
2.Price maker.
3.Entry barriers.
4.Control over the market supply.
5.Selling cost not incurred.
6.Industry firm are same.
7.Substitutes.
8.Profit maximization.
9.Profit discrimination.
10.Downward sloping demand curve.

TYPES:1.
2.
3.
4.
5.
6.
7.
8.

Simple Monopoly
Discriminating Monopoly
Private Monopoly
Social Monopoly
Joint Monopoly
Natural Monopoly
Legal Monopoly
Technological Monopoly

Advantages of Monopoly:1.
2.
3.

Ideal structure of Market


Encourages research and development
Encourages innovation

Disadvantages of Monopoly:1.
2.
3.

Leads to exploitation of consumer


Potential for supply is limmited
Consumer choice is limited

PROFIT
Definition:-

Profit is reward earned by a businessman for


his contribution to the process of production.
PROFIT = TOTAL REVENUE TOTAL COST

CONCEPTS OF PROFIT
1.Normal

Profit.
2.Super Normal Profit.
3.Profit Maximization.

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

THANK YOU!