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Because firms don't know what rival is doing. Thus they invest more in R&D to prevent themselves from losses (in case rival takes lead). Neither is future certain. In this environment of uncertainty it is always better to invest more in R&D
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33. Explain why, in contrast to the "ideal" perfectly competitive model with full perfect information, imperfect...
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?
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...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry You have to explain in each case which one (or more) of the perfect competition assumptions are violated. You must give an explanation in each case. (a) One firm produces a large portion of the industry output and can influence the market price, but there are many other firms in that industry, and they all (including the large firm) produce an identical product. (b)...
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...
Explain why businesses and consumers cannot get or choose not to get full information, and instead...
Explain why businesses and consumers cannot get or choose not to get full information, and instead operate in a condition of imperfect information.
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.
Do you think the market for labor is perfectly competitive? Explain why or why not. (4...
Do you think the market for labor is perfectly competitive? Explain why or why not. (4 points Is it possible to get rid of all unemployment? Explain why or why not. (3 points)
Explain why a monopoly is a price maker but a perfectly competitive firm is a price...
Explain why a monopoly is a price maker but a perfectly competitive firm is a price taker.
Explain how a perfectly competitive market causes allocative efficiency to occur. What is the mathematical requirement...
Explain how a perfectly competitive market causes allocative efficiency to occur. What is the mathematical requirement for allocative efficiency? Why is this requirement met in perfect competition and in no other market structure?
Explain why perfect competition is an ideal that is difficult to attain in every country, including...
Explain why perfect competition is an ideal that is difficult to attain in every country, including in the United States? List several business situations in which perfect competition is approached in your country. Discuss also why you think those business situations you listed approach to perfect competition.
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...
3. (10 points) Please explain why each of the following is NOT a perfectly competitive industry You have to explain in each case which one (or more) of the perfect competition assumptions are violated. You must give an explanation in each case. (a) One firm produces a large portion of the industry output and can influence the market price, but there are many other firms in that industry, and they all (including the large firm) produce an identical product. (b)...
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