Question
In: Economics
Can perfect competition exist in reality?
Can
perfect competition exist in reality?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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
A competitive industry consists of m identical firms, each with a cost function of C(Y)=Y2+1. Suppose also that the market demand is given by P=100-Y. Calculate the equilibrium number of firms in the market.
4. Perfect competition vs. monopolistic competition: (a) What is the difference between perfect competition and monopolistic...
4. Perfect competition vs. monopolistic competition:
(a) What is the difference between perfect competition and
monopolistic competition?
(b) Suppose the only long-run adjustment is free entry or exit
of firms. What is the difference between the short-run equilibrium
conditions faced by a perfectly competitive firm and a
monopolistically competitive firm? How about the long-run
equilibrium conditions?
There are four types of market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. “Perfect competition...
There are four types of market structures: perfect
competition, monopolistic competition, oligopoly, and monopoly.
“Perfect competition describes a market structure, where a large
number of small firms compete against each other” (Zeder, 2016).
With a perfect competition market structure firms maximize profits,
firms can enter and exit the market as they please, firms sell
identical goods, and there are no consumer preferences.
“Monopolistic competition refers to a market structure, where a
large number of small firms compete against each other”...
The characteristics of perfect competition are:
Perfect Competition
1. The characteristics of perfect competition are:
___________________, _____________________,
________________________
___________________, ___________________
2. The demand curve in perfect competition is: ______________
(Shape or slope)
3. The firm operates at the quantity where _________ equals
___________.
4. Total profit is equal to ___________ minus
________________.
5. The marginal revenue curve in perfect competition is:
______________ (Shape or slope)
6. The entrance of one or two new firms (in perfect competition)
does what to market price?
_______________________________________,
7. For a...
5.) Perfect Competition, Monopoly, and Monopolistic Competition Few industries satisfy the conditions of perfect competition. Nevertheless,...
5.) Perfect Competition, Monopoly, and Monopolistic
Competition
Few industries satisfy the conditions of perfect competition.
Nevertheless, perfect competition is studied because it represents
a case in which the market mechanism works well. Therefore, it is a
useful model to measure the performance of other market forms. How
can perfect competition act as a guide for government
regulators?
What are the key features of pure competition? Can we really have a perfect competition market?...
What are the key features of pure competition? Can we really
have a perfect competition market? If Yes, why? If No, why not?
QUESTION 5 (20 Marks) 5.1 List FIVE (5) requirements for perfect competition to exist. (5 marks)...
QUESTION 5
5.1 List FIVE (5) requirements for perfect
competition to exist.
5.2 Explain why any firm maximises profit, or minimises losses,
when marginal cost is equal to marginal
revenue.
5.3 Explain the shape of the marginal revenue curve facing (a) a
perfectly competitive firm and (b) a
monopolistic firm.
QUESTION 5 (20 Marks) 5.1 List FIVE (5) requirements for perfect competition to exist. (5 marks)...
QUESTION 5
5.1 List FIVE (5) requirements for perfect competition to exist.
5.2 Explain why any firm maximises profit, or minimises losses,
when marginal cost is equal to marginal revenue.
5.3 Explain the shape of the marginal revenue curve facing (a) a
perfectly competitive firm and (b) a monopolistic firm. (10
marks
Explain imperfect and perfect competition?
Explain imperfect and perfect competition?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
- There are a large number of tasks involved in information technology and programming, and many of...
ADVERTISEMENT