Bioassay is defined as the determination of the concentration of a biologically active substance by using a biological indicator in reference to a standard. It involves comparing the biological activity of a test substance to a reference standard. There are two main types of bioassays - quantal bioassays, which measure an all-or-nothing response, and graded bioassays, which measure a response proportional to dose. Bioassays are used to standardize drugs, determine potency, and estimate doses needed for therapeutic or toxic responses.