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MARKET DISEQUILIBRIUM: A state of the market that exists when the opposing forces of demand and supply do not balance out and there is an inherent tendency for change. This should be directly (and immediately) contrasted with the entries on equilibrium and market equilibrium. For the market, disequilibrium is indicated by the existence of either a surplus or a shortage. The inherent tendency to change occurs because a surplus causes the price to decline and a shortage causes the price to rise. So long as market disequilibrium persists, the price will be induced to change.

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CONSTRAINED UTILITY MAXIMIZATION: The process or goal of obtaining the highest possible level of utility, under given restrictions, when the highest overall level of utility cannot be reached. You might want to check out the utility maximization entry. While the generic notion of utility maximization as the unrestricted pursuit of utility is important to the study of economics and consumer demand theory, it's probably less important to every day decisions than the notion of constrained utility maximization. We seldom achieve the maximize utility outright, but must do the best we can under assorted constraints and restrictions. See budget constraint.

     See also | utility | utility maximization | consumer demand theory | budget constraint |


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OLIGOPOLY AND MONOPOLY

Oligopoly and monopoly have some similarities, both tend to be relatively large and possess significant market control, but also have a few important differences, oligopoly market has more than one firm. The dividing line between oligopoly and monopoly, however, can be blurred due to the closeness of substitutes and the inclination of oligopoly firms to collude.

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