What is the perfect substitute?
A perfect substitute is a situation where two goods are viewed as identical. Perfect substitutes are commodities such that it is impossible to build a brand whereby customers prefer your product. Producers of a perfect substitute must except a market price and typically have no influence on the price.
Related Posts:
- What does consumer choice mean? - Consumer choice refers to the decisions that... (Read More)
- What is a key assumption of consumer choice theory? - Consumer choice theory is based on the... (Read More)
- What is the importance of consumer choice in economics? - Consumer theory is the study of how... (Read More)
- What is consumer optimal choice? - The consumer's optimal choice is on the... (Read More)
- What is the optimal consumption bundle? - • The optimal consumption bundle is the... (Read More)
- What is the optimal consumption point? - The optimum consumption occurs at the highest... (Read More)
- What is the optimal choice? - The optimal choice from a combination of... (Read More)
- What does it mean to maximize your utility? - Utility maximisation refers to the concept that... (Read More)
- What is Mrs formula? - Marginal Rate of Substitution Formula The Marginal... (Read More)
- What is the difference between MRS and MRT? - The Difference Between the MRT and the... (Read More)