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it is a state in which market demand = market supply
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In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
Derive the wage offer curve and supply curve of labor and determine the equilibrium wage under perfect competition in the labor market?
The question doesn't provide any curve, because that's impossible on Answers.com. However it's easy to determine the equilibrium wage in a perfectly competitive market by equating the market demand for labour with the market supply of labour.
Is price determined by interaction of total demand and total supply in market under perfect competition?
Yes
Why do average revenue rise under perfect competitive market?
In perfect competition prices are fixed, Average revenue is also same for all units of goods.
Why is price per unit equal to the average revenue and marginal revenue of a firm under perfect competition?
Under Perfect competition , Marginal revenue is constant and equal to the prevailing market price, since all units are sold at the same price. Thus in pure competition MR = AR = P.
How does free market function under perfect competition?
it regulates itself.
In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
Derive the wage offer curve and supply curve of labor and determine the equilibrium wage under perfect competition in the labor market?
The question doesn't provide any curve, because that's impossible on Answers.com. However it's easy to determine the equilibrium wage in a perfectly competitive market by equating the market demand for labour with the market supply of labour.
Is price determined by interaction of total demand and total supply in market under perfect competition?
Yes
Why do average revenue rise under perfect competitive market?
In perfect competition prices are fixed, Average revenue is also same for all units of goods.
Why is price per unit equal to the average revenue and marginal revenue of a firm under perfect competition?
Under Perfect competition , Marginal revenue is constant and equal to the prevailing market price, since all units are sold at the same price. Thus in pure competition MR = AR = P.
What type of economy does Competition among producers helps keep prices down?
under a free market economy and perfect competition, model, producers are forced to produce at the lowest possible cost (productively efficient) to gain customers.
Under perfect competition is average revenue curve elastic or inelastic?
Under Perfect Competition the demand curve is perfectly elastic. I don't know if that helps but it might
Is it true that one of the four conditions for perfect competition is identical products also called commodities?
There are a lot more than four conditions, but "homogeneous" products (there's no such thing as identical products) are one of the ways you tell if a market is operating under perfect competition.
Under perfect competition a firm can earn normal perfect in the long-run?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
Which is the reason why there is no advertising by individual firms under pure competition?
Under pure competition, firms produce a homogeneous product, so there is no reason to advertise. Pure competition is also known as perfect competition.
