1.They all involves sellers and buyers
2.They both involves commodities which are bought and sold despite the fact that are either differentiated or homogeneous
3.They do not necessarily involves a specific place[area] for the transctions to be conducted
4.All are types of imperfect market structure(ie. monopoly, oligopoly,monopson, etc.)
5.They all depends on price and quantity
What important charactertistic do all three types of imperfectly competitive firms share?
They all have downward sloping demand curve
Economies of scale
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
one firm which sells a good price set by that firm hard for other firms to enter market
What important charactertistic do all three types of imperfectly competitive firms share?
They all have downward sloping demand curve
Being imperfectly imitable means that the key resources used are impossible, extremely costly or difficult for other firms to duplicate.
Economies of scale
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
one firm which sells a good price set by that firm hard for other firms to enter market
The competitive environmental forces influence the firms customers, rival firms, new entrants, substitutes, and supplies.
Perfectly competitive firms would not advertise as advertising would serve no purpose. A market that is perfectly competitive exists only in theory.
Japanese firms are competitive because they want to make a profit. They typically do this by expanding outside of Japan.
None
Be price takers.
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.