1. Why do economists consider perfect competition to be the most efficient market structure? 2. Why...

1. Why do economists consider perfect competition to be the most efficient market structure?

2. Why is diversification recommended for investors?

3. Why is the demand curve for a monopolist downward sloping? How does this affect the monopolist’s behavior?

Expert Solution

Rahul Sunny answered 1 year ago

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer...

Explain why economists generally argue that perfect competition is the most desirable market structure. Your answer should reflect what economists argue. Whether you agrees with the view held by economists is immaterial to this question: explain the economic argument.

One of the most fundamental types of market structure – perfect competition. Consider the following industries...

One of the most fundamental types of market structure – perfect competition. Consider the following industries and discuss which industries could suit best into the category of perfect competition. When you evaluate each industry, assess whether each industry fits into the category of perfect competition, by satisfying four underlying characteristics of perfect competition in the textbook with supporting details. Barley industry Clothing industry Cellphone industry Heathcare industry

Why is Perfect Competition the “best” form of market structure? Does Perfect Competition exist? Describe the...

Why is Perfect Competition the “best” form of market structure? Does Perfect Competition exist? Describe the features of a perfectly competitive firm. Provide examples to support your views.

Perfect Competition (15) 1. What is unique about perfect competition as a market structure that sets...

Perfect Competition (15) 1. What is unique about perfect competition as a market structure that sets it apart from the other three market structures we cover in this course? How does it affect the diagrams that we use to analyze firm behavior? (4)

1. Most economists will freely admit that finding a textbook example of perfect competition in the...

1. Most economists will freely admit that finding a textbook example of perfect competition in the real world is unlikely. Can you think of any markets that come close in the sense that the firms involved exhibit price-taking behavior? 2. Adam Smith’s theory of the invisible hand is often used to justify a hands-off approach to market activity. Can you give an example where government intervention in a market led to an inefficient outcome? How about an example where government...

Market Structure Exercise ANSWER ALL 2. Perfect competition is a market structure in which_____________ firms are...

Market Structure Exercise ANSWER ALL 2. Perfect competition is a market structure in which_____________ firms are producing a __________ product and entry is _____________. 3.Monopolistic competition is a market structure in which_________ firms are producing a _________ product and entry is ______________. 4. Oligopoly is a market structure in which _________ firms are producing a ____________ product and entry is ________________. 5. Monopoly is a market structure in which ________________ firm supplies a product and entry ________________. 6. Oligopoly is...

Explain, why Perfect Competition is regarded as the best market structure for the society?

1. Please discuss the characteristics of the perfect competition market structure. 2. What are the main...

1. Please discuss the characteristics of the perfect competition market structure. 2. What are the main characteristics of a competitive market? 3. Explain the difference between a firm’s revenue and its profit. Which do firms maximize?

The type of market structure most likely to be allocatively efficient is pure monopoly. monopolistic competition....

The type of market structure most likely to be allocatively efficient is pure monopoly. monopolistic competition. a purely price discriminating auction. Which of the following changes will not affect the market supply or the market demand in a purely competitive industry? a change in the number of firms a change in the number of buyers a change in fixed costs a change in marginal costs The prices of raw materials increase in a purely competitive industry. This change will result...

Define Market Structure in Economics ? Define Perfect Competition. Define Imperfect Competition. 3.) Describe the Perfect...

Define Market Structure in Economics ? Define Perfect Competition. Define Imperfect Competition. 3.) Describe the Perfect Competition Firm's Demand Curve and explain why it's that shape. For an Industry in Perfect competition, when is it possible to Enter and Exit the market?[ The Market Supply Curve is determined by What 5 Determinates? 5.) What is a Monopoly (define and explain)? The Market Supply Curve is determined by What 5 Determinates? Explain each determinate.

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