0
What else can I help you with?
When sellers in a competitive market take the selling price price as given they are said to be?
When sellers in a competitive market take the selling price as given, they are said to be price takers. This means they accept the market price determined by supply and demand without influencing it, as their individual sales contribute only a small portion to the overall market. As a result, they cannot set their own prices and must sell at the prevailing market rate to remain competitive.
Does the price equal the marginal revenue in a competitive market?
In a competitive market, the price does equal the marginal revenue.
Is marginal revenue equal to price in a perfectly competitive market?
In a perfectly competitive market, marginal revenue is equal to price.
Is the price equal to marginal revenue in a perfectly competitive market?
In a perfectly competitive market, the price is equal to the marginal revenue.
What is market price determined by?
the market or market forces
When sellers in a competitive market take the selling price price as given they are said to be?
When sellers in a competitive market take the selling price as given, they are said to be price takers. This means they accept the market price determined by supply and demand without influencing it, as their individual sales contribute only a small portion to the overall market. As a result, they cannot set their own prices and must sell at the prevailing market rate to remain competitive.
Does the price equal the marginal revenue in a competitive market?
In a competitive market, the price does equal the marginal revenue.
Is marginal revenue equal to price in a perfectly competitive market?
In a perfectly competitive market, marginal revenue is equal to price.
Is the price equal to marginal revenue in a perfectly competitive market?
In a perfectly competitive market, the price is equal to the marginal revenue.
Does marginal revenue equal price in a perfectly competitive market?
Yes, in a perfectly competitive market, marginal revenue equals price.
What is market price determined by?
the market or market forces
What is meant by administered price?
Essentially, administered price is referring to a price determined by the conscious price policy of a seller rather than by impersonal competitive market forces. The earliest known use of the term administered price was in 1934.
What is equilibrium price in economics?
It is the price where demand equals supply in a competitive market.
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.
Are monopolists price takers as are competitive firms?
No, monopolists are not price takers like competitive firms. In a competitive market, firms accept the market price as given and cannot influence it due to many competitors. In contrast, a monopolist has market power and can set prices above marginal cost, as they are the sole supplier of a good or service, allowing them to influence the market price.
How do you determine the impact of using imperfect substitutes in a competitive market?
The impact of using imperfect substitutes in a competitive market can be determined by analyzing factors such as consumer preferences, price elasticity, and market competition. Imperfect substitutes may lead to changes in consumer behavior, pricing strategies, and market dynamics, ultimately affecting market outcomes and profitability for businesses.
What would the equilibrium price and quantity be in a oligopoly market?
In an oligopoly market, the equilibrium price and quantity are determined by the interdependent pricing and output decisions of a few dominant firms. These firms often engage in strategic behavior, such as price collusion or price wars, which can lead to higher prices and lower quantities compared to a competitive market. The equilibrium is reached when firms balance their production levels with market demand while considering their competitors' actions. As a result, the equilibrium price may be higher and the quantity lower than in more competitive market structures.
