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Q: Describe how profits and losses drive the long-run adjustment process of pure competition.
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Q: Which of the following economists was an originator of the theory of imperfect competition?…
A: The correct answer with detailed explanation is as follows:-
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- Consider the following two industries the rice industry and labtop industry. Which industry would fit best into the category of perfect competition and why? Make sure you relate the most relevant economic concepts and theory to justify arguments.Explain using a two-dimensional graph how imperfect competition brings a loss of economic efficiency.Which of the following is not necessarily a characteristic of perfect competition? low pricesa large number of buyers and sellersa homogeneous productperfect information
- Which of the following is a barrier to entry in a perfectly competitive industry? a)brand name recognition b)patents or copyrights c)economies of scale d) all of the above are correct e)none of the above is correctWhat is the Imperfect competition that refers to any form of market structure other than perfect competition?Employ the production cost theory to explain why we consider the Fruit & VegetableMarketin Al-Aweer to have a perfect competition structure.
- Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries.Are there barriers to entry in a Perfect Competition market? Explain in detail.Synthesize the latest findings/ results from the literature on firms and imperfect competition
