Fill in the missing words: 1. If economic profits are being made in a perfectly competitive market, then firms will ________ the market. This will ________ the extra revenue firms earn for each unit of output sold

Fill in the missing words: 1. If economic profits are being made in a perfectly competitive market, then firms will the market. This will the extra revenue firms earn for each unit of output sold

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 7E

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Concept explainers

Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.

Question

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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