*** Market condition wherein no buyer or seller has the power to alter the market price of a good or service.
Characteristics of a perfectly competitive market are a large number of buyers and sellers, a homogeneous (similar) good or service, an equal awareness of prices and volume, an absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal.
perfectly competitive industry become a monopoly, what changes
A perfectly competitive firm would set its prices at a perfectly competitive price.
perfectly elastic demand function.
is earning a profit
A monopolist is a single seller in the market, while a perfectly competitive firm is one of many sellers. A monopolist has the power to set prices, while a perfectly competitive firm is a price taker and must accept the market price. This difference in market structure leads to monopolists typically charging higher prices and producing less output compared to perfectly competitive firms.
perfectly competitive industry become a monopoly, what changes
perfectly competitive industry become a monopoly, what changes
A perfectly competitive firm would set its prices at a perfectly competitive price.
yes
perfectly elastic demand function.
is earning a profit
A monopolist is a single seller in the market, while a perfectly competitive firm is one of many sellers. A monopolist has the power to set prices, while a perfectly competitive firm is a price taker and must accept the market price. This difference in market structure leads to monopolists typically charging higher prices and producing less output compared to perfectly competitive firms.
Minimizing cost
when price>marginal cost
Demand = Price = Marginal Cost.
A perfectly competitive firm is considered a price taker because it has no control over the price of the goods or services it sells. In a perfectly competitive market, there are many buyers and sellers, and each firm's output is a small fraction of the total market supply, so individual firms must accept the market price set by supply and demand forces.
Total Cost