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no influence over determining price
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In a perfectly competitive market an increase in demand will in the long run generally cause?
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
Why does a perfectly competitive market require many buyers and sellers?
You need these people in order to sell products. Money needs to exchange hands in order to be competitive.
In a perfectly competitive market while an industry is a price maker an individual firm is a price taker elaborate?
An industry is a price maker because many companies compete and the market dictates the price. Companies are price takers because they can't set the prices. Organizations have to focus on keeping cost low.
In a perfectly competitive market do firms exhibit productive efficiency?
in the short-run they are not able to but in the longrun it can be attainerd as businesses want to lower their average costs!
Why would a market that consisted entirely of perfectly competitive firms not be 'perfect'?
The concept of perfect competition is based on a large number of small firms, where no single firm can affect the market price. These firms operate as price takers, and use the cost supplied by the market. These ideal companies would insure efficiency. However, perfect competitive firms are unrealistic in real world scenarios.
In a perfectly competitive market individual consumers have .?
no influence over determining price
In a perfectly competitive market what do individual consumers have?
In a perfectly competitive market, individual consumers have access to homogeneous products offered by numerous suppliers, allowing them to make choices based on price. They are price takers, meaning they cannot influence the market price due to the abundance of alternatives. Additionally, consumers have perfect information about prices and products, enabling them to make informed decisions. This environment fosters competition, ensuring that consumers can purchase goods at the lowest possible prices.
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.
Why does a perfectly competitive market require many participants as both buyers?
so no individual can control the price
What is the advantage of a consumers right to choose from adequate variety of goods and services?
a. It ensures a competitive market and allows for individual differences among consumers.
What is an advantage of a consumers right to choose from a adequate variety of goods and services?
a. It ensures a competitive market and allows for individual differences among consumers.
Is marginal revenue equal to price in a perfectly competitive market?
In a perfectly competitive market, marginal revenue is equal to price.
Is the price equal to marginal revenue in a perfectly competitive market?
In a perfectly competitive market, the price is equal to the marginal revenue.
Why is a perfectly competitive market structure considered to be as an ideal economic system and what is the role of innovations in a perfectly competitive market structure?
A perfectly competitive market structure is considered ideal because it promotes efficiency, ensures optimal resource allocation, and provides consumers with the lowest possible prices. In such a market, numerous firms compete, leading to innovation as companies strive to differentiate their products or reduce costs to gain a competitive edge. Innovations can enhance productivity, improve product quality, and drive down prices, benefiting consumers and fostering economic growth. Overall, innovation in a perfectly competitive market supports continuous improvement and adaptability, ensuring that the industry evolves in response to consumer needs.
Why does a perfectly competitive market require many participants as both buyers and sellers?
So no individual can control the price.
Does marginal revenue equal price in a perfectly competitive market?
Yes, in a perfectly competitive market, marginal revenue equals price.
Is cigarette market a perfectly competitive market?
There is no such thing as a perfectly competitive market. It is merely a economic model to compare other market structures to. Cigarette market is more likely a oligopoly.
