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What does monopolistic competition and perfect competition have in common?
they maximize profit
What does the perfect competition graph look like in the long run?
In the long run, the perfect competition graph shows a horizontal demand curve and a downward-sloping supply curve intersecting at the equilibrium point, where price equals marginal cost. This results in maximum efficiency and zero economic profit for firms.
When monopolistic competition is compared to perfect competition what can you generally expect with reguard to price output and profit?
We can expect that prices are higher, output is less, and profits are high er.
What factors influence long run profit in perfect competition?
In perfect competition, factors that influence long-run profit include market demand, production costs, entry and exit of firms, and technological advancements. These factors can impact a firm's ability to earn profits over time in a competitive market environment.
In perfect competition market When the firm do the profit arise?
it arise if minimum scale of a single producer is small relative to the demand for the good or service
What does monopolistic competition and perfect competition have in common?
they maximize profit
Which is the main difference between perfect competition and monopolistic competition?
In monopolistic competition, sellers can profit from the differences between their products and other products.
What does the perfect competition graph look like in the long run?
In the long run, the perfect competition graph shows a horizontal demand curve and a downward-sloping supply curve intersecting at the equilibrium point, where price equals marginal cost. This results in maximum efficiency and zero economic profit for firms.
Use examples to show the difference in the profit maximization goal of perfect competition and monopoly?
Shut
Explain why the MC curve can be considered to be the individual firm's supply curve under conditions of Perfect Competition can the whole length of MC be considered the supply curve Whywhy not?
if the MC=Price, the firm got the maximum profit. that's what they want.
When monopolistic competition is compared to perfect competition what can you generally expect with reguard to price output and profit?
We can expect that prices are higher, output is less, and profits are high er.
What factors influence long run profit in perfect competition?
In perfect competition, factors that influence long-run profit include market demand, production costs, entry and exit of firms, and technological advancements. These factors can impact a firm's ability to earn profits over time in a competitive market environment.
If a firm can maximize its profit by producing output where price is equal to its marginal cost in which type of market is the firm operating?
The firm is operating in Perfect markets. In perfect markets (Perfect competitions), the firm can maximize its profit when its MC is equal with its MR. And in perfect markets, usually the following condition is true: (MR = AR = P). So, in equilibrium which is also the profit maximizing point for a firm, the following condition is a must: MR = AR = P = MC.
In perfect competition market When the firm do the profit arise?
it arise if minimum scale of a single producer is small relative to the demand for the good or service
How are price and output determined under pure or perfect competition?
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
How are price and output determined under pure and perfect competition?
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
What does a monopolist competition do to maximize its profit?
If a company or organisation is a monopoly it has no competition. Therefore it can do anything it wishes to maximize its profit
