What is the level of competition faced by firms in each market?

Expert Solution

A market is said to be perfectly competitive if each firm under it is a price taker.
A firm is a price taker if it cannot alter the market price.
No firms can raise or lower the market price if there are enough sellers.
A firm cannot sell anything if it raises its price more than its competitors.
In each market, firms cannot raise their prices simply because consumers know the prices of all firms.
In the markets,a perfectly competitive firm faces a demand curve.
As number of firms increases in market,a perfectly competitive market is approached.
In a perfectly competitive market, demand curve of a single firm gets flattered
There are many market structures in which firm can compete with each other.
The type of structure influence the firm's behavior.
A market might also have an uncompetitive structure with only small number of firms competing.
But the behavior of firms might be highly competitive in the same market.

Rahul Sunny answered 2 years ago

What is the main competition faced by the NFL?

QUESTION 3 (20 MARKS) Faced with a choice between competition and collusion, firms under oligopoly can...

QUESTION 3 Faced with a choice between competition and collusion, firms under oligopoly can behave very differently in oligopolies. Just how they behave is often of interest to the competition authorities, which are on the look-out for anti-competitive practices. In what forms of tacit collusion are supermarkets likely to engage? Explain why manufacturers of food products continue to supply supermarkets, despite concerns that they are not always treated fairly. Provide THREE (3) justifications why the behavior of oligapolistic firms is...

The text summarized monopolistic competition as follows: Monopolistic competition refers to a market where many firms...

The text summarized monopolistic competition as follows: Monopolistic competition refers to a market where many firms sell differentiated products. Differentiated products can arise from characteristics of the good or service, location from which the product is sold, intangible aspects of the product, and perceptions of the product. Think about a small business you might enjoy opening. Typical examples might be a restaurant, specialty clothing store, or professional service. Assume that it will be in a monopolistically competitive market structure. How...

Both monopolistic competition and perfectly competition are market structures where firms earn normal profits in the...

Both monopolistic competition and perfectly competition are market structures where firms earn normal profits in the long run, but with a difference. a. Using a single diagram, show the equilibrium price,output and average costs for both markets in the long run. b. Which is the common feature of both markets that makes the sellers earn only normal profits in the long run?

what are the objectives of firms in perfect competition and oligopoly?

The market for computers is characterized by perfect competition. Firms and consumers are price takers and...

The market for computers is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. All firms are identical in terms of their technological capabilities. Thus the cost function as given below for a representative firm can be assumed to be the cost function faced by each firm in the industry. The total cost function for the representative firm is given by the following...

Consider two identical firms in a Cournot competition. The market demand is P = a –...

Consider two identical firms in a Cournot competition. The market demand is P = a – bQ. TC1 = cq1 = TC2 = cq2 . Find the profit function of firm 1. Maximize the profit function to find the reaction function of firm 1. Solve for the Cournot-Nash Equilibrium. Carefully discuss how the slope of the demand curve affects outputs and price.

What challenges does GM faced at the organizational level

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...

Market Forms The following questions address some of the price and output decisions faced by firms...

Market Forms The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded. Table 1-a Average Fixed cost Average Variable Cost Average Total Cost Output 0 1 $ 180.00 $ 135.00 $ 315.00 2 $ 90.00 $ 127.50 $ 217.50 3 $ 60.00 $ 120.00 $ 180.00 4 $ 45.00 $ 112.50 $ 157.50 5 $ 36.00 $ 111.00 $ 147.00 6 $ 30.00 $...

Question