The representative firm in a purely competitive industry?
Is a competitive advantage in a mature industry possible how can a firm differentiate in a mature industry?
What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
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.
Firm A one firm in a competitive industry faces higher costs of production As a result conusmers end up paying higher prices Discuss?
What are some competitive advantages for a business consulting firm to assist a fast food industry with expanding their business?
A Competitive advantage describes the ability of a firm to be better at something than all other firms in that industry. This advantage allows the firm to differentiate their product/themselves by being 'better' than their competition. Not to be confused with comperative advantage, which focuses on a firms ability to be better at something COMPARED to another firm.
Many buyers and sellers in the market. No barriers to entry or exit in the industry. The firm is a price taker in a perfectly competitive market. No persuasive advertising. In the long run, the firm achieves both allocative and productive efficiency. Existence of only normal profits in the long run.
Competitive profile matrix is an essential strategic management tool to compare the firm with the other major players of the industry. But did you mean by nstp the National Space Technology Programme? In any case a competitive profile matrix on the matter is way too large a document to include on an answer here.
a monopolistically competitive firm is a firm that has sale a differentiated product such as toothpaste and shoes. such a firm is a price taker. such a firm likes to hire very smart people to ask easy questions on wikianswers.com because these people can't be bother to look up these thing on wikipedia.
In a perfectly competitive industry marginal revenue or (the cost to produce one more unit) stays constant so for example a pencil costs 1 dollar to make at the 101st pencil it will still cost 1 dollar to make. the price at which it must sell it at is also one dollar because if the company decides to raise the price it will lose all of its consumers to another firm competing with them that…
Infant industry protection can come in the form of Tariffs, Quotas, Non-Tariff-Barriers or any inhibition of free trade in order to protect a *particular* industry (rather than the whole economy) as that particular industry or firm achieves dynamic increasing returns (costs fall with cumulative production rather than with the current rate of production- in other words, costs fall as the firm gains experience). The argument of using tariffs to protect an infant industry are only…
Should a monopolistically competitive firm take into account it's fixed costs when deciding how much to produce?
Explain how the general environment and the industry environment are highly related how can such relationship affect the profitability of a firm or industry?
In a perfectly competitive market while an industry is a price maker an individual firm is a price taker elaborate?
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profits?
They produce at a different point than a competitive firm, a monopoly produces at a point where marginal revenue= marginal cost, where a competitive firm equates price to marginal cost. The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market would produce.
Marginal cost curve above the average variable cost curve, is the same as the short run supply curve. In perfect competition, MC=Price. It follows that production will be at that point. Hence the supply curve is the same as that part of the MC curve which is above AVC, where the firm can cover its variable cost....this is better than shutting down.