0
Firms are price takers, price is equal to marginal costs, demand is perfectly elastic, i.e. constant and horizontal, the firms makes zero economics profits.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
The representative firm in a purely competitive industry?
will
If a purely competitive constant-cost industry is realizing economic profits you can expect industry supply to?
Remains the same...
In the long run in a purely competitive industry entry and exit of firms can occur. True Or False?
True
Why can price be substituted for marginal revenue in the MR equals MC rule?
It can be substituted because the industry would become purely competitive.
What is an example of a purely elastic industry?
What industry is purely elastic
The representative firm in a purely competitive industry?
will
If a purely competitive constant-cost industry is realizing economic profits you can expect industry supply to?
Remains the same...
In the long run in a purely competitive industry entry and exit of firms can occur. True Or False?
True
Why can price be substituted for marginal revenue in the MR equals MC rule?
It can be substituted because the industry would become purely competitive.
What is an example of a purely elastic industry?
What industry is purely elastic
Entry and exit in a purely competitive industry occur in the. True Or False?
Long run, so that long-run economic profits are zero.
Price can be substituted for marginal revenue in the MR equal MC rule when an industry is purely competitive because price?
Is constant regardless of the quantity demanded.
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
Is service and quality likely to be better in an industry dominated by a monopoly or in a perfectly competitive industryWhy?
in a perfectly competitive industry
In long run equilibrium a purely competitive firm will operate where price is?
nn
What is the world's most competitive industry?
IT
Immediate industry and competitive environments?
The immediate industry includes the competitive environment for business. It includes all the competition within the industry and governmental agencies regulating the business.
