0
A firm operating in a purely competitive resource market faces a resource supply curve that is?
Wiki User
∙ 13y ago
B. Perfectly elastic
This is because it is operating in a perfect competitive market
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What market characteristics suggests that purely competitive firms have only weak incentives to innovate?
Economies of scale
Is a purely competitive firm a price taker?
Indeed it is. A competitive market means that there are a lot of companies that sell the same product. With this conditions, if a company rise the price, consumers will easily find another company, losing all profits. Therefore a firm cannot control the price in a competitive market, it has to take the market price.
The representative firm in a purely competitive industry?
will
Why a firm in a purely competitive labor market a wage taker?
This is due to the fact that their are other firms competing to get that same labour, therefore making them a wage taker.
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
What is an example of a purely elastic market?
currency exchange market
Why are economies never purely market or command economies?
Neither purely market nor purely command economies can adequately answer the basic economic questions in every situation. -Plato
In long run equilibrium a purely competitive firm will operate where price is?
nn
In the long run in a purely competitive industry entry and exit of firms can occur. True Or False?
True
What does the word Pashu mean?
Jealously guarding something that is of no value to yourself driven by a purely competitive nature
A purely competitive firm is precluded from making economic profit in the long run because?
it is a price taker
A renewable energy resource that can stop?
Hydro-electricity is a purely perfect example. Others, Quizzies?
