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Relative profitability and efficiencies of firms

From around 1890 until 1970 year, the “structure-conduct-performance paradigm” dominated theories concerning how firms behave in various types of markets. Here the word “performance” in this context consider to things as: (i) decisions by firms about pricing, production, profitability, investments in research and development and marketing strategies, etc. (ii) how the distribution of income is influenced by the activities of unregulated firms. (iii) the numbers of firms, the markets from that these firms hire resources, and the kinds of goods produced and sold. (iv) the relative profitability of firms into the industry, the relative efficiencies of different market structures, and their effects upon the distribution of income and social welfare. (v) All of the above.

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