A perfectly competitive market is a market that is classified by many firms, with homogeneous products, since there are so many firms and consumers (buyers and sellers) each is a price-taker, meaning they have no control over what the price is.
firms as a result set price to the marginal cost, which is the marginal revenue which is also the wage.. If there are profits in the short run due to differences in capital, (in the short run, capital stock is fixed), ability of firms to produce at different quantities is apparent. However over the long run, firms are able to make all costs variable, meaning they can change their capital and labor stock in order to become more efficient. These changes result in higher efficiency, and an eventual drop in price where p=mr. There are no profits in long run.
Trade embargos and corruption are factors that could prevent a given market from becoming competitive. These factors usually lead to uneven playing ground as far as the competitiveness of a given market is concerned.
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
By Market Force
no
poultry market rice market
Trade embargos and corruption are factors that could prevent a given market from becoming competitive. These factors usually lead to uneven playing ground as far as the competitiveness of a given market is concerned.
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
By Market Force
no
Perfectly competitive firms would not advertise as advertising would serve no purpose. A market that is perfectly competitive exists only in theory.
poultry market rice market
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
Yes
characteristics of perfectly competitive market includes 1.Homogeneous products i.e identical in shape,size,taste,color,e.t.c 2.perfect knowledge to both consumers and producers 3.no transport costs incurred 4.perfect mobility of factors of production 5.common prices for identical goods in the market. 6.
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
A monopolist has to lower its quantity relative to the competitive market to maximize profits because the monopolist is already in control of the biggest part of the market. This means that because they're already in control, to keep the market competitive they need to release the same amount of product as their competition.
no