What assumptions are necessary for a market to be perfectly competitive? Why each of these assumptions...

What assumptions are necessary for a market to be perfectly competitive? Why each of these assumptions seem important to you. For a perfectly competitive firm following information are available: Q = 100 units; AC = Taka 25, AVC =Taka 10; P = Taka 20. Based on the on the information provide your recommendation for the firm.

Expert Solution

Rahul Sunny answered 1 year ago

6. a)What assumptions are necessary for a market to be perfectly competitive? Why each of these...

6. a)What assumptions are necessary for a market to be perfectly competitive? Why each of these assumptions seem important to you? b. For a perfectly competitive firm following information are available: Q = 100 units; AC = Taka 25, AVC =Taka 10; P = Taka 20. Based on the on the information provide your recommendation for the firm.

What are the necessary conditions for a perfectly competitive market to exist

Is the gas market a perfectly competitive market? Why or Why not? What is the cause...

Is the gas market a perfectly competitive market? Why or Why not? What is the cause of these high prices? Are oil companies to blame? Is the government to blame? Should we enact price controls on the market? What can we do to combat the high prices

What are the characteristics of a perfectly competitive market?

Explain SEVEN (7) conditions necessary for a perfectly competitive market to exist. (7)

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.

In a perfectly competitive market, each of the 10 consumers in in the market has demand...

In a perfectly competitive market, each of the 10 consumers in in the market has demand characterized by P(q)=MWTP(q)=100 - 5.7*q. If 100 units are transacted, what is the market price?

Explain why a perfectly competitive market maximizes social welfare.

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 is the main characteristic of a monopolistically competitive market different from a perfectly competitive market?...

What is the main characteristic of a monopolistically competitive market different from a perfectly competitive market? Discuss the important implications of this difference for a monopolistically competitive firm’s demand (i.e., in regards to its price elasticity or price-cost margin, and the number of consumers), and for its short-run and long-run profits.

Question