ABSTRACT
In the last chapter it was assumed that firms buying inputs were price takers in input markets, which would be the case if the numbers of buyers in those markets was sufficient to ensure reasonably competitive conditions. In this chapter we consider some of the consequences of relaxing that assumption. However, in extending the analysis to imperfectly competitive input markets we need to take into account not only competitive conditions between buyers, but also competitive conditions between sellers. As a preliminary therefore, it is useful to remind outselves of which particular types of economic agent are involved in supplying inputs.
