Perfect Competition is inconsistent with declining cost industries. Is this statement true or false? Why?
Perfect Competition is inconsistent with declining cost industries. Is this statement true or false? Why?
Homework Answers
True.
Perfect competition assumes that the firms producing in the market will produce at a point where all the firms in the market will be getting the same profit and the price will be set by the market, the cost structure of the firms are same. The firms in the market can only manage to change the quantity of the goods they are supplying and will not change the cost of producing that good. if the price decreased some firms will leave the market, now if some firm can themselves reduce the cost because they have a lower cost producing the goods they will lead to an oligopoly or a monopoly getting considerable economies of scale. this will change the whole structure of the market. the statement is true.
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Perfect Competition is inconsistent with declining cost industries. Is this statement true or false? Why?
1. Evaluate whether the statement is true or false. Explain why Competitive firm never produces when it is making a...
1. Evaluate whether the statement is true or false. Explain why Competitive firm never produces when it is making a negative profit. a. b. In cost minimization, as wage increases, a firm will always decreases labour input Long run market supply curve in perfect competition is horizontal C. d. If price is lower than equilibrium price, consumer surplus is higher than the equilibrium since consumers can enjoy lower price.
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In perfect competition as well as in monopolistic competition, a. profit is positive in a long-run...
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Question 2 (10) TRUE FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false....
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I just need help with comparing monopoly to perfect competition, which statement are true Use the...
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. Do you think perfect competition is best for the economy and for consumers? Why or...
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Which of the following industries might be classified in pure or perfect competition? O A. restaurants...
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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.
TRUE/FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false. You...
TRUE/FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer. In your answer book, write down only the question number and next to the number either True or False. Example: If you believe sub-question 2.11 is true, then write down: 2.11: True. 2.1. Peter is a plumber. He employs three workers and has some capital in...
1. Evaluate whether the statement is true or false. Explain why Competitive firm never produces when it is making a negative profit. a. b. In cost minimization, as wage increases, a firm will always decreases labour input Long run market supply curve in perfect competition is horizontal C. d. If price is lower than equilibrium price, consumer surplus is higher than the equilibrium since consumers can enjoy lower price.
1. Evaluate whether the statement is true or false. Explain why...
In perfect competition as well as in monopolistic competition, a. profit is positive in a long-run equilibrium for each firm. b.entry and exit by firms are restricted. c. there are many firms in a single market. d. marginal revenue is equal to price for each firm. ECTION 22 Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. all firms can eventually earn economic profits. b. each of the sellers offers a somewhat different product. C. strategic interactions...
Question 2 (10) TRUE FALSE QUESTIONS Consider the following list of statements. Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer. In your answer book, write down only the question number and next to the number either True or False 2.6. Monopolistic competition is a market structure characterised by the fact that there is often collusion between the sellers. 2.7. Half-price specials are...
I just need help with comparing monopoly to perfect
competition, which statement are true
Use the cost and revenue data to answer the questions. Price 90 80 Quantity 15 30 45 60 75 70 Total revenue 1350 2400 3150 3600 3750 3600 Total cost 900 1500 2250 3150 4200 5400 60 50 9040 If the firm is a monopoly, what is marginal revenue when quantity is 30? MR = $ 70 What is marginal cost when quantity is 60? MC...
QUESTION 42 If there are large fixed costs due to research and development, perfect competition does not generate new ideas because o a. the government does not adequately fund innovation b. with monopolistic competition, prices are equal to the marginal cost minus a markup c. firms need to recoup these costs through higher profits O d. with monopolistic competition, prices are equal to the marginal cost O e. perfectly competitive firms always set prices lower than the marginal cost QUESTION...
Which of the following industries might be classified in pure or perfect competition? O A. restaurants O B. software design O C. automobile manufacturing O D. all of the above O E. none of the above
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