List the characteristics needed for a perfectly competitive market. Provide a simple explanation of each -...

List the characteristics needed for a perfectly competitive market. Provide a simple explanation of each - your explanation should explain how does that characteristic enable a perfectly competitive firm to form/exisit.

Expert Solution

Perfectly competitive market : It is a type of market in which we have large number of buyers as well as sellers for a particular product.

Characteristics

1. Product is homogeneous : The product in perfectly competitive market is similar ie having same features which is sold by large number of people due to which there is a huge competition among the sellers.

2. No barriers to entry and exit : Anybody is free to enter the market , there is no restriction on anyone for entry and exit from the perfectly competitive market.

3. Large buyers and sellers : As the definition says, this type of market consists of large numbe rof buyers and sellers due to which competition raises.

4. Knowledge of product : Since there is alot competition, the knowledge of product becomes important for tthe sellers in order to attract the customers and influence them to buy the product.

Rahul Sunny answered 2 years ago

List each of the five characteristics of a perfectly competitive market and briefly explain each. What...

List each of the five characteristics of a perfectly competitive market and briefly explain each. What are the implications of these characteristics for firm behavior, market prices, and efficiency? Discuss how common it is for each of these assumptions to be met in actual market situations. Based on that discussion, what role might government have to play in regulating markets towards achieving efficient (socially optimal) outcomes? Use graphical analysis when appropriate.

List the characteristics of a perfectly competitive market. Give an example. Why do firms in perfectly...

List the characteristics of a perfectly competitive market. Give an example. Why do firms in perfectly competitive markets have no control over the price of their products?

What are the characteristics of a perfectly competitive market?

1.) What are the characteristics of the perfectly competitive market? List and explain. 2.) What is...

1.) What are the characteristics of the perfectly competitive market? List and explain. 2.) What is a firm's short run supply curve?

Describe the characteristics of a perfectly competitive market and a monopolistically competitive market? How are they...

Describe the characteristics of a perfectly competitive market and a monopolistically competitive market? How are they similar? How are they different?

1)List the two main characteristics of each industry structure: perfectly competitive market, monopolistic competition, monopoly competition?...

1)List the two main characteristics of each industry structure: perfectly competitive market, monopolistic competition, monopoly competition? 2.For each of these market structures above state if there exist barriers to new firm entry.

1. List and briefly describe the main characteristics of a perfectly competitive market. 2. Graphically show...

1. List and briefly describe the main characteristics of a perfectly competitive market. 2. Graphically show a perfectly competitive firm who is earning a short run profit. Is this possible in the long run? Why/why not? 3. Graphically show a perfectly competitive firm that is losing money in the short run but who should continue producing. 4. Make-up a numerical example showing why it is often rational for a perfectly competitive firm to stay in business in the short run...

a. Give three characteristics of a perfectly competitive market. [3 marks] b. List and explain three...

a. Give three characteristics of a perfectly competitive market. [3 marks] b. List and explain three types of barriers to entry that may be used in a monopoly. [3 marks] c. For a monopolist, why is marginal revenue less than price for every level of output except the first? [4 marks] d. Give the conditions which should exist for price discrimination? [3 marks] e. Draw a diagram to show the long run equilibrium condition of the perfectly competitive firm [4...

Explain in your own words, the characteristics of a perfectly competitive market. For each characteristic, give...

Explain in your own words, the characteristics of a perfectly competitive market. For each characteristic, give an example of a firm or industry that would exhibit that trait. Keep in mind that no one firm can hold every characteristic.

Identify the characteristics of an ologopolistic market. Discuss how these characteristics change the perfectly competitive graphs....

Identify the characteristics of an ologopolistic market. Discuss how these characteristics change the perfectly competitive graphs. Does the process for deciding on the optimal price and quantity change?

Question