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perfectly competitive industry become a monopoly, what changes
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
Competitive advantage in a mature industry is definitely possible. There are many ways through which a firm can differentiate in a mature industry. Being unique and maintain quality are some of the basic aspects.
it is a price taker
nn
perfectly competitive industry become a monopoly, what changes
perfectly competitive industry become a monopoly, what changes
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
Competitive advantage in a mature industry is definitely possible. There are many ways through which a firm can differentiate in a mature industry. Being unique and maintain quality are some of the basic aspects.
it is a price taker
The source of a firm's market power is its competitive advantage. When a business has a competitive advantage they can use that to make significant changes in the industry.
B. Perfectly elastic This is because it is operating in a perfect competitive market
Competitive advantage can come from products, employees and operations. When a firm has a competitive advantage, they are able to operate as a leader within their industry.
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower 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.
This is due to the fact that their are other firms competing to get that same labour, therefore making them a wage taker.