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The question is incomplete. No options are given (for which of the following) to answer the question. firms face downward-sloping curves

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What is the purpose of commodity futures options trading?

Commodity futures options trading allows potential buyers and sellers to compete freely in an efficient manner. There is no such this as an ideal market, but this market comes closer to perfect than other markets.


What is the impact of international competition?

International competition allow consumers to have more options when it comes to products. They also help prices fall because the market is more competitive.


What is the difference between bear and bull markets when it comes to stock investing?

Bull market investors have a more hopeful attitude about the state of things and thus the bull markets are rising whereas bear market investors take a more pessimistic stance on things and are thus falling.


Who benefits the most from a monopoly?

In a monopoly, the entity that benefits the most is the monopolistic firm itself. It gains significant market power, allowing it to set prices higher than in competitive markets, leading to increased profits and potentially reduced innovation. Consumers typically face fewer choices and higher prices, while the lack of competition can stifle improvements in product quality and service. Overall, the monopolist's advantage often comes at the expense of consumer welfare and market efficiency.


Perfect competition is more desirable than monopoly because perfect competition result in large output and lowest price Discuss?

in terms of the consumer, a monopolistic firm can raise his prices higher than his costs as much as he wants because there are no rivals to compete with in terms of price. In fact the demand curve for a monopolistic form is almost full inelastic. However, it is just almost inelastic, because there are some indirect alternatives to every good or service provided. However, in cases where the consumer really can't do without the good, he is forced to pay the high prices offered by the monopolistic firm. Example, no matter how much fuel rises in price, people will still demand of it, even if they can barely afford it, because it has become a necessity which allows us to carry out everyday tasks.Hence, Perfect Competition is better because it allows the consumer to benefit from the lowest price possible that the firm can provide. This is because, as there should be very manyfirms in a Perfect Competitive market structure, they all of them are competing with the price, and price tends to get lower in the long-run terms as the market's supply curve tends to shift outwards. Please don't understand me wrong, firms are price takers, all products and prices are homogenous to all firms. But when it comes to price this is caused because the firms are competing so much to win the largest market share that they eventually end up all selling with the same price and hence, selling at their marginal cost of producing the good.

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