The Size of the Market

Martin J. Beckmann

Asia-Pacific Journal of Accounting & Economics, 2011, vol. 18, issue 1, 1-9

Abstract: The size of the market is the number of buyers that can be reached effectively in a spatial market. We exhibit as determining factor the intercept of the demand function with production cost and with transportation cost. For linear demand and cost function explicit form has to be given. Market structures considered are isolated monopoly, monopolistic competition and perfect competition. When transportation costs fall, markets expand under monopoly, but shrink under monopolistic or perfect competition.

Date: 2011
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DOI: 10.1080/16081625.2011.9720870

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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