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*** 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.
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One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
What is the most important pricing strategy for a perfectly competitive firm?
Minimizing cost
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
Is Apple Computer a perfectly competitive firm?
yes
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
What is the most important pricing strategy for a perfectly competitive firm?
Minimizing cost
When should a perfectly competitive firm should expand output?
when price>marginal cost
What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
A perfectly competitive firm will continue producing in the short run as long as it can cover its?
Total Cost
What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
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.
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
