It is hard to find profitable project.High profits in product market attract competitors.competitors put downward pressure on prices and profits.
Economists say that competitive markets are efficient because when there is competition prices are lower. The more available an item, the less it will cost the consumer.
Monopolistic competition and oligopoly
a Decrease in quolity and demand of the other
True
the process by which markets move to equilibrium is so predictable that economists sometimes refer to markets as being governed by the law of supply and demand.
Economists say that competitive markets are efficient because when there is competition prices are lower. The more available an item, the less it will cost the consumer.
The motto of Competitive Enterprise Institute is 'Free Markets and Limited Government'.
Monopolistic competition and oligopoly
a Decrease in quolity and demand of the other
True
Arvind Virmani has written: 'Moral hazard in competitive loan markets' 'Adverse selection, competitive rationing and government policy in credit markets' 'The microeconomics of a corrupt tax bureaucracy'
the process by which markets move to equilibrium is so predictable that economists sometimes refer to markets as being governed by the law of supply and demand.
markets with high start-up costs are less likely to be perfectly competitive.
In Monopoly, there is no market power as the monopoly firm is the only supplier and holds pricing power. However in a perfect competitive market, prices are set by interaction of supply and demand. This is why monopoly markets are undesirable relative to perfect competitive market.
Gdbugufifudusks
rational, self interested consumers rational, profit maximizing firms competitive markets with price taking behavior
barriers keep companies from entering the market freely