Question

Download Hide email Edit and reply owerPoint Online Start Slide Show Print to PDF CommentsHelp HW Assignment #8 Perfect Competition 1. What are the characteristics of a PC firm? 2. Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits. ng for webpooldm10a32.infra.lync.com.. HELP IMPROVE OFFICE NOTES

Answer 1

1. Characteristics of a perfectly competitive firm:

A) It is a price taker and sells goods at the market price.

B) In long run, it produces at it's minimum point on the average cost curve.

C) At the profit maximizing point(where price = MC), it produces socially efficient quantitity.

D) It doesn't perform any non price competition (advertising) because it produces homogeneous goods like other PC firms in the same market.