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The labor demand curve of a purely competitive seller perfectly elastic?
Wiki User
∙ 13y ago
yes the demand curve is perfectly inelastic and horizontal
Wiki User
∙ 13y ago
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What is a purely competitive industry?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
What is an example of a purely elastic industry?
What industry is purely elastic
A purely competitive firm's short-run supply curve is?
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
The representative firm in a purely competitive industry?
will
What is an example of a purely elastic market?
currency exchange market
What is a purely competitive industry?
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
A firm operating in a purely competitive resource market faces a resource supply curve that is?
B. Perfectly elastic This is because it is operating in a perfect competitive market
What is an example of a purely elastic industry?
What industry is purely elastic
A purely competitive firm's short-run supply curve is?
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
The representative firm in a purely competitive industry?
will
What is an example of a purely elastic market?
currency exchange market
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.
In long run equilibrium a purely competitive firm will operate where price is?
nn
Explain why perfect competition may result in allocative efficiency?
Because in a perfectly competitive market, resources are used perfectly efficiently (excuse the grammar). A purely competitive market has very many peculiar features. One of them is that every firm is a price taker. This means they cannot set the price, so they must be as efficient as the most efficient competitor or they will be out-priced. This results in inefficient firms going out of business and only the most efficient staying alive.
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
