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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 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.
Why is it possible for competition among firms to force down to capital intensive production?
It is possible for competition to force competitors into capital intensive production in order to compete. When a firm does this, they can gain a competitive edge over others in the industry and get more customers because their competition will have to charge more to cover the expenses.
Farm production are highly competitive?
your mums highly competitive
How does a perfectly competitive firm ensure its profitability in the long run?
A perfectly competitive firm ensures its profitability in the long run by maximizing efficiency, minimizing costs, and continuously adapting to market conditions to maintain a competitive edge. This includes optimizing production processes, pricing strategies, and staying responsive to changes in demand and competition.
What is a production determined by individuals and private groups?
A production determined by individuals and private groups is referred to as a market economy. In this system, decisions about production, consumption, and investment are guided by individuals and businesses operating in a competitive market environment rather than by government intervention.
What are the factors of revenue is decreasing?
* Increased Competition * Decreased Market size * Undesirable change in the legal / governmental environment * Inefficient production or management * Lack of sales ability
What does capitalism encourage?
Competition Innovation in Production
What likely happened to the price of the books?
The price of the books likely fluctuated due to market demand, cost of production, and competitive pressures. It may have increased if demand surpassed supply or production costs went up. Conversely, the price could have decreased if there was excess inventory or intense competition.
Is The Competition a Disney movie?
No , "The Competition" starring Richard Dreyfuss is a Columbia Pictures Corporation production .
Are the varoius factors of production affect by globel competition?
Are the varoius factors of production affect by globel compitition
What is unethical competition?
Unethical competition is trying to beat the competition by using immoral means. An example is employing slave labor in order to cut production costs.
