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In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
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Under perfect competition is average revenue curve elastic or inelastic?
Under Perfect Competition the demand curve is perfectly elastic. I don't know if that helps but it might
Under perfect competition a firm can earn normal perfect in the long-run?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
Which is the reason why there is no advertising by individual firms under pure competition?
Under pure competition, firms produce a homogeneous product, so there is no reason to advertise. Pure competition is also known as perfect competition.
In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
What is market equilibrium under perfect competition?
it is a state in which market demand = market supply
Under perfect competition is average revenue curve elastic or inelastic?
Under Perfect Competition the demand curve is perfectly elastic. I don't know if that helps but it might
Under perfect competition a firm can earn normal perfect in the long-run?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
How does free market function under perfect competition?
it regulates itself.
Which is the reason why there is no advertising by individual firms under pure competition?
Under pure competition, firms produce a homogeneous product, so there is no reason to advertise. Pure competition is also known as perfect competition.
What is the theory of optimum allocation of resources?
This Theory has been discussed in Public Finance under Dalton's principle of 'Maximum Social Advantage'. Optimum allocation of resources is that point where maximum marginal sacrifice of people is equal to maximum marginal benefits.
In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
What is market equilibrium under perfect competition?
it is a state in which market demand = market supply
Why is price per unit equal to the average revenue and marginal revenue of a firm under perfect competition?
Under Perfect competition , Marginal revenue is constant and equal to the prevailing market price, since all units are sold at the same price. Thus in pure competition MR = AR = P.
Is price determined by interaction of total demand and total supply in market under perfect competition?
Yes
Why do average revenue rise under perfect competitive market?
In perfect competition prices are fixed, Average revenue is also same for all units of goods.
What is under utilization of resources?
Underutilization of resources occurs when resources are not being used to their full potential, leading to inefficiency and waste. This could include unused or idle machinery, underutilized workforce, or inefficient allocation of financial resources. Addressing underutilization can improve productivity and reduce costs for an organization.
How opportunity costs are linked to economic decision making Markets under ideal conditions ensure an efficient allocation of scarce resources but in practice conditions are usually not ideal cri?
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