Strictly speaking, pure competition has never existed and probably never will. Then why study it?

Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.

A: In perfect competition, there is homogeneity in the products sold by the consumers. This means that…

Q: was the west fraser timber company always been classified as perfectly competitive market in the…

A: When talking about the competitiveness of a firm, it can be said that it is determined by the market…

Q: The number of firms in an industry is not always a good indicator of the extent to which that…

A: The number of sellers in an industry determines the market share of the firm. A large number of…

Q: Which of the following is not an essential condition of pure competition?

A: Perfectly competitive market refers to the market structure where the large number of buyers and…

Q: All of the following are true for competition in the long run, except one of them.  Which is it?…

A: Perfect competition refers to a theoretical market structure. There are many buyers and sellers and…

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

A:

Q: In perfectly competitive markets, _____________________ and marginal revenue are identical.

A: A perfectly competitive market is a market in which there are many firms and many buyers. The…

Q: A large city has nearly 500 restaurants, with new ones entering regularly as the population grows.…

A: A perfectly competitive market alludes to a market structure in which there are countless firms and…

Q: When discussing pure competition, the term long run refers to a period of time long enough to allow:…

A: Option ‘c’ is the correct answer. Option ‘c’ - Because Option ‘a’ and ‘b’ both are correct. Hence,…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate

A: In the long term, all production components are interchangeable. Free entrance and departure, as…

Q: a) Distinguish between a perfect competition market and a monopoly market in an economy?

A: In economics, there exists mainly four kinds of market structure and these market structures are…

Q: compare and contrast the monopoly and perfect competition in market structure in long run?

A: Monopoly is a market structure which has a single seller and many buyers. Perfect competition is a…

Q: Economists consider perfect competition as more efficient than other types of market structures,…

A: Firms in a perfectly competitive market in the long run end up earning zero or normal profits. This…

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: Is it true that a firm in a perfectly competitive market will never be able to earn positive…

A: There are different types of market which are broadly grouped as: Perfect competition and Imperfect…

Q: In recent years in the brewing industry, a couple of large firms that have historically had most of…

A: The four forms of competition in the market are pure competition or perfect competition,…

Q: What term refers to companies shaping their actions based on what their competitors do? allocative…

A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…

Q: Why do all industries, except pure competition, not reach efficiency? What types of efficiency are…

A: Answer (50) Pure competition is a market situation where : products are homogenous there are a very…

Q: Economic profit is

A: To find : What is economic profit

Q: A firm will realize the highest level of profit if it is able to engage

A: The monopoly would result in the single seller and many buyers in the market. The monopoly would…

Q: Has any particular firm in the perfectly competitive market found a way to differentiate or…

A: Perfect competition is characterized by homogeneous products which are perfect substitutes for each…

Q: If all assumptions of perfect competition hold, why would firms in such an industry have little…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…

A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…

Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

Q: A firm under perfect competition is

A: To find : What is firm under perfect competition.

Q: Name atleast 2 business or service in the Philippines that is an example of perfect competition

A: Some of the features of Perfect Competition: 1. Firms are price takers 2. No individual firm can…

Q: In the short-run model of perfect competition, there is always a range of prices above the shutdown…

A: When talking about a perfectly competitive firm it can be seen that the firm will stay in the market…

Q: Is it bad for consumers if a large corporation drives down prices to eliminate competition? Explain

A: A situation when two or more rival companies lower the prices of a similar product with the aim to…

Q: Firms always lose money in a long-run industry equilibrium, true or false?

A: Firms always lose money in a long-run industry equilibrium, true or false.

Q: Why economic profit is negat

A: Profit: It refers to the revenue earned by the companies. With more profit earned by the companies,…

Q: The decision to continue competing in a market depends upon the answers to the following questions…

A: To sustain in the market ones have to bear the fixed cost in the short run as we know.  Compete with…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: In the long run, any firm will eventually leave the industry if

A: In the long run, any firm will eventually leave the industry if price :

Q: Many economists would argue that there is no such thing as perfect competition in the real world.…

A: The perfectly competitive market is the one with completed information and complete freedom to make…

Q: why competitive firms stay in business if they make zero profit?

A: First it should be clear that zero economic profit means that total Total Revenue is equal to the…

Q: What are the advantages of scale in capitalist competition

A: GIVEN   the advantages of scale in capitalist competition   Defination of scale: means cost benefits…

Q: Which of the following is true concerning purely competitive industries?

A: The perfect competition market consists of a large number of sellers who are price takers as the…

Q: Strictly speaking, pure competition is relatively rare. Then why study it?

A: Pure competition is a business condition where similar goods are sold by a wide number of individual…

Q: how is the short run different from the long run in terms of economic profit in : - perfect…

A: Economic profit is defined to be the difference between the revenue generated from the sale of the…

Q: What form of competition best characterizes this market? What characteristics did you identify that…

A: Monopolistic competition: The salient feature of monopolistic competitive market is product…

Q: Consider the following two industries the rice industry and labtop industry. Which industry would…

A: Answer - Perfect Competition - Perfect competition is the market structure which lots of firm and…

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:-