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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.
What else can I help you with?
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 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.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
What is the advantage of a consumers to choose from an adequate variety of goods and services?
a. It ensures a competitive market and allows for individual differences among consumers.
Orcording to law if you have high supply with low demend you get lower prices?
When supply is greater than demand, consumers are at liberty to choose from their many options. This leads to sellers lowering their prices to remain competitive, and entice customers to choose them.
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 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.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
Who can help me choose competitive copy bass guitar?
A bass guitarist in a local band can help you choose.
What is a sentence for the word non-competitive?
non-competitive branches are not so good. If you want more money choose something Non-competitive.
Can I compare competitive electricity charges to choose a provider?
that would be winmeel
Where can I find coupons for Godaddy.com?
There are many sites to choose from. My favorites are Fatwallet.com, Retailmenot.com, and Bradsdeals.com. These sites always offer all of the current promo codes you will need.
Why should you vote in elections?
in order to choose a right politician that will lead perfectly our entire nation .
Choose the correct sentence what. a.he always does it b.he always do it?
a - he always does it
What after BSC in life science should one choose to do other then MBA?
You can do MSC or can appear for Competitive Exams.
How business enterprises use mis to enhance competitive intelligence and competitive advantages?
The management information system they choose will help them monitor the environment, which will help them develop a competitive environment. The way the system handles information will help them create business intelligence.
Can you dye your hair after 24 hrs even though the test says that you have to do it for 48 cos it is perfectly fine?
It is always important to follow manufacturer's directions for safety reasons, but if you have not had a reaction the color and you choose to dye your hair, remember, it's your choice and it's on you!
