Answered: Because industry X is characterized by…

Because industry X is characterized by perfect competition, every firm is earning zero economic profit. If the product price falls, no firm can survive. Do you agree or disagree.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 15E

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Question

Because industry X is characterized by perfect competition, every firm is earning zero economic profit. If the product price falls, no firm can survive. Do you agree or disagree.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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