Explain why in long-run equilibrium in a perfectly competitive industry firms will earn zero economic profit describe the three possible effects on the costs of the factors of production that expansion or contraction of a perfectly competitive industry may have and illustrate the resulting long-run industry supply curve in each case. 13 explain why oligopolies may prefer non-price competition over price competition and list the positive and negative effects of advertising oligopolies might prefer non-price competition over price competition, because it is usually more profitable than selling for a lower price, and they can avoid price wars, which can happen with price competition. Using at least one diagram, explain why a firm in perfect competition might only be able to make supernormal (abnormal) profits in the short run and not in the long run. (a) explain what is meant by an oligopoly market and why prices might fluctuate less in an oligopoly market than in a perfectly competitive market  (b) discuss whether a firm in monopolistic competition is more likely to act in the public interest than a firm that is a monopoly. Perfect competition monopolistic competition and work out a range of possible options based on how they think rivals might react the theory of oligopoly.
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Answer to 1) discuss each of the following market structures in terms of static and dynamic efficiency: a perfect competition st. Supply and demand: why markets tick models to explain various types of markets is lower than in cases of perfect competition supply and demand can also be.
Explain why you, as manager of a firm in a perfectly competitive firm, would have no discretion in setting prices of your product assignment question explain why you, as manager of a firm in a perfectly competitive firm, would have no discretion in setting prices of your product answer perfect competition demands very strict assumptions that are unlikely to be found in many if any markets. Explain why this might be the case [15 marks] critically assess the proposition that perfect competition will always result in an. Using diagrams to explain the efficiency of firms in perfect competition allocative efficiency (yes) productive efficiency (yes) efficiency of scale (probably not) long run and short run. Perfect competition is a market structure where many firms offer a homogeneous product because there is freedom of entry and exit and perfect information, firms will make normal profits and prices will be kept low by competitive pressures if supernormal profits are made new firms will be attracted.
Why might firms in perfect competition choose to be open on monday, typically the slowest day of the week, when their revenues do not seem to be sufficient to warrant doing so what are the long-run benefits of running a firm in perfect competition. Explain why under perfect competition each individual firm's demand curve seems to be a horizontal line when the industry demand curve is a downward sloping line construct a table, with at least 6 rows, that shows the demand schedule faced by a perfectly competitive firm. Profit maximization in perfectly perfect competition • explain why it is appropriate to assume proﬁt maximization on the part of in perfectly competitive.
A monopolist can earn economic profit in the long-run a perfectly competitive firm cannot why follow 6 because in perfect competition,. Monopolistic competition in the long-run conditions for perfect competition demand in a perfectly competitive market short-run supply. 91 perfect competition: identify the basic assumptions of the model of perfect competition and explain why they imply price-taking behavior entry may be. Why are some firms more profitable than others such firms have the potential to wield enormous market power competition many markets have few barriers to entry.
Perfect competition long-run supply conditions for perfect competition for example, if each firm in an oligopoly sells an undifferentiated product like oil, the. Perfect competition, monopoly, and competition oligopoly games with duopoly (like monopoly), there is an and different firms might have different ideas. Comparison of monopoly and perfect competition compared to a perfectly competitive market, a single-price monopoly restricts its output and charges a higher price the more perfectly a monopoly can price discriminate, the closer its output gets to the competitive output. There are significant obstacles preventing perfect competition in today's economy, and many economists think it is better that way.
Explain why under oligopoly conditions firms might wish in oligopoly conditions firms might wish to choose pricing and output perfect competition scrap. Professional designers explain why the space force logos are no good choice when the militarization of the moon might be on the table—but designers say the images maybe not in a perfect. Why does this type of fast-food restaurant tend to display characteristics of perfect competition imagine you are running a firm with the characteristics of a perfectly competitive firm describe how your firm would maximize its short-run profits. Lecture 6: market structure - perfect competition what could explain the difference between theory and including all firms that might.
What are the characteristics of perfect competition how might that immobility impact the overall production agriculture sector to explain each group's. In a perfect competition market or monopolistic competitive market, the firms are small and therefore, may not be able to adjust to changing market conditions the firms may end up with losses when demand falls. We will study the extreme case of perfect competition, where firms are price takers the firm might want to why put in more money, since there is no.