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Why must perfectly competitve markets always deal in commodities?
Perfectly competitive markets deal in commodities because these markets require homogenous products, where goods are identical and interchangeable among suppliers. This uniformity ensures that no single seller can influence the market price, as consumers will always choose the lowest-priced option. Additionally, the ease of entry and exit for firms in perfectly competitive markets leads to a focus on standard products that can be produced at scale, reinforcing the commodity nature of the market.
Why must perfectly competitive market always deal in commodities?
Because the buyer will not pay extra for one particular company's good. The buyer will always choose the supplier with the lower price.
Why resources are not always mobile and willing to move?
Resources are not always mobile and willing to move because they tend to stay put and sometimes remain unemployed. Resource mobility, an ideal in the competitive free enterprise economy, is much more difficult to accomplish in the real world. When resources are immobile markets do not always function efficiently.
Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price?
Because if it set its price higher than the current market price, it would not sell anything; and if it set its price lower than the current price, it would sell all of its product, but it would not make an economic profit. Understand, however, that this does not happen in real life, because in real life, there is no such thing as a perfectly competitive market.
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
Why must perfectly competitve markets always deal in commodities?
Perfectly competitive markets deal in commodities because these markets require homogenous products, where goods are identical and interchangeable among suppliers. This uniformity ensures that no single seller can influence the market price, as consumers will always choose the lowest-priced option. Additionally, the ease of entry and exit for firms in perfectly competitive markets leads to a focus on standard products that can be produced at scale, reinforcing the commodity nature of the market.
Why must perfectly competitive market always deal in commodities?
Because the buyer will not pay extra for one particular company's good. The buyer will always choose the supplier with the lower price.
Why pure competition cannot exist?
Pure competition cannot exist because in a perfectly competitive market, there would be a very large number of small firms producing identical products, with no barriers to entry or exit. In reality, markets often have barriers to entry, firms have some degree of market power, and products are not always identical due to differences in quality or branding. These factors prevent pure competition from being achieved.
What is the advantages of competitive environment?
A competitive environment always leads to evolution, which is the law of nature.
Why resources are not always mobile and willing to move?
Resources are not always mobile and willing to move because they tend to stay put and sometimes remain unemployed. Resource mobility, an ideal in the competitive free enterprise economy, is much more difficult to accomplish in the real world. When resources are immobile markets do not always function efficiently.
What is the word for always having to win?
competitive
Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price?
Because if it set its price higher than the current market price, it would not sell anything; and if it set its price lower than the current price, it would sell all of its product, but it would not make an economic profit. Understand, however, that this does not happen in real life, because in real life, there is no such thing as a perfectly competitive market.
Has sport always have to be competitive?
No that's why there r friendlies in soccer
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
What does it mean when a friend is competitive?
When a friend is "competitive" it means that he or she always likes to be the best and have more things, popularity, friends than you do. Friends that are competitive only think of themselves and like to be put first. A competitive friend is not a good friend. Hope this helped!
Is it ok to always start text conversations with a girl?
It's perfectly okay.
Is cheerleading and dance a competitive sport?
Yes, both cheerleading and dance are competitive sports, but not always. Both disciplines have their non-competitve applications as well.
