Homework Answers
Answer : From my point of view, Identical product is the characteristics that not exist or it is unrealistic Every product has some degree of differentiation exist between them in order to there ingredients or manufacturing method. A simple agricultural product has some degree of differentiation such as quality , sowing and harvesting technique etc.
Price taker is also not realistic characteristics as there are some firm which dominated and set there own price.
All the information is disclosed to every seller is nota realistic characteristics in a perfect competition market place.
The statement is correct that all the five characteristics of a perfect competition is not exist in a real world in a same industry but we study perfect competition because it provides benchmark for understanding other forms of market structure I.e ( Oligopoly, monopoly, monopolistic) to different level of student and economists.
The perfect thing about perfect competition is that achieve by a particular industry is that all firms have exactly the same cost structure and there are large number of sellers in the market selling identical and same level of the product in the market place in order to grab maximum share from them.
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Which of the defining characteristics of perfect competition are unrealistic? If there is no such thing...
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal?...
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal? price? B) Want to lower your price? Explain why or why not. change when market price changes? Explain. 3. A. B.Explain which of the four characteristics is primarily responsible for the fact that the C. If you owned a firm in a perfectly competitive market would you: A) Want to raise your D.Draw the demand curve for a firm under perfect competition. Would the...
Perfect competition is the category of industry structure that is used as a benchmark for comparison....
Perfect competition is the category of industry structure that is used as a benchmark for comparison. So it is important that you know it. (part a) List four characteristics of a perfectly competitive market. (part b) Is it possible for firms to earn positive economic profit in the long run? Explain why or why not.
Monopoly and perfect competition are polar opposites. In the former, there is only one producer of...
Monopoly and perfect competition are polar opposites. In the former, there is only one producer of a good. Barriers to entry are high. In the latter, there are many producers of an identical product. There are no barriers to entry. Most markets are not perfectly competitive, nor are they monopolized. We categorize everything in between these polar extremes as "imperfect competition". There are two major models of imperfect competition – monopolistic competition and oligopoly. Questions for discussion: 1. What are...
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal...
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal costs, marginal revenue and the price levels at equilibrium within each type of these markets (Using graphs might be helpful). b. Under what conditions do oligopolies function like perfect competition or monopolies? Explain in detail. Can we ever observe perfectly competitive markets or tendency towards them in the real world? Why, why not? C.
Explain your reasoning and write legibly Why are perfectly competitive firms price-takers? Choose one industry that...
Explain your reasoning and write legibly Why are perfectly competitive firms price-takers? Choose one industry that is likely to be perfectly competitive and describe why. Which of the characteristics of perfect competition do you find to be least realistic and why?
1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the...
1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point. 3) In the long run, perfectly competitive firms cannot make an economic profit. Why? 4) Describe how economic losses are eliminated in a perfectly competitive industry.
Which of the following conditions distinguishes monopolistic competition from perfect competition?
Which of the following conditions distinguishes monopolistic competition from perfect competition? a. the number of sellers in the market b. the freedom of entry and exit by firms in the market c. the size of firms in the market d. product differentiation A monopolistically competitive firm chooses its a. price and quantity just as a monopoly does. b. quantity but faces a horizontal demand curve just as a competitive firm does. c. price but can sell any quantity at the market price just as an oligopoly does. d. price...
Chapter 12 1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain...
Chapter 12 1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point. 3) In the long run, perfectly competitive firms cannot make an economic profit. Why? 4) Describe how economic losses are eliminated in a perfectly competitive industry.
One thing that makes monopolistic competition similar to perfect competition is that, in the a short...
One thing that makes monopolistic competition similar to perfect competition is that, in the a short run, neither can earn positive economic profit. b long run, both are guaranteed positive economic profit. c long run, both will earn zero economic profit. d short run, both are guaranteed positive economic profit. e long run, both could earn positive economic profit, but monopolistic competitors will earn more than perfect competitors. Refer to the following graph to answer the following questions: In the...
1. What do you think best describes each of the following markets: perfect competition, monopoly, oligopoly...
1. What do you think best describes each of the following markets: perfect competition, monopoly, oligopoly or monopolistic competition? Explain. a. The market for cars. b. The market for soy beans. c. The market for cellphones. d. The market for dining out in a large city. 2. Why is price equal to marginal revenue for a perfectly competitive firm but not for a monopolist?
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal? price? B) Want to lower your price? Explain why or why not. change when market price changes? Explain. 3. A. B.Explain which of the four characteristics is primarily responsible for the fact that the C. If you owned a firm in a perfectly competitive market would you: A) Want to raise your D.Draw the demand curve for a firm under perfect competition. Would the...
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal costs, marginal revenue and the price levels at equilibrium within each type of these markets (Using graphs might be helpful). b. Under what conditions do oligopolies function like perfect competition or monopolies? Explain in detail. Can we ever observe perfectly competitive markets or tendency towards them in the real world? Why, why not? C.
1. What do you think best describes each of the following markets: perfect competition, monopoly, oligopoly or monopolistic competition? Explain. a. The market for cars. b. The market for soy beans. c. The market for cellphones. d. The market for dining out in a large city. 2. Why is price equal to marginal revenue for a perfectly competitive firm but not for a monopolist?
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