1. Why do firms exist in a market economy?

In a nation, the processes of production and sale and purchase all take place in what is called a…

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. Why do firms exist in a market economy?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 29RQ: Will a perfectly competitive market display allocative efficiency? Why or why not?

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Q2 Why are perfectly competitive markets described as efficient?
what is economic firms market ?
A. Explain, how or why the commodity (say bottled water) market can be considered as a good example of perfect competitive market? B. Explain why perfect competitive markets are regarded as the best market structure for the society?
How do firms in a competitive market work?
Explain the process of market mechanism.
use relevant diagrams as well as microeconomic theory, discuss why competitive firms stay in business if they make zero profit?
1.In briefly. _What are the 4 market structures? Give their characteristics..?
What is the goal of a firm in a market economy?
How would you discuss competitive advantage and how a company estimates their own competitive advantage?
Define productivity efficiency and allocative efficiency. What conditions must be met in order to achieve them?
a) What are the basic differences between “competition in the market” and “competition for the market”?
Explain what is meant by allocative efficiency and under what conditions is this efficiency achieved? And explain what is meant by efficiency in production, and under what conditions is this efficiency achieved?