Firm under perfect competition

The firm beneath perfect competition is a price taker by the reasons shown below:

A) Number of firms: The number of firms beneath perfect competition is so big that no individual firm by changing sale, can cause any meaningful modification in the total market supply. Therefore, market price remains unaffected.

B) Homogenuous product: Each and every firm in a perfectly competitive industry generate homogeneous product. Therefore, price remains similar.

C) Perfect knwledge: Each and every buyer and sellers contain perfect knowledge regarding market price therefore no firm charge a different price than market price. Therefore a uniform price prevails in market.

View Complete Question

Related Questions in Microeconomics

Q : Can GNP be more than GDP Can GNP be

Can GNP be more than GDP? Answer: Yes, GNP can be greater or more than GDP if NFIA is positive.

Q : Demand in a specific period In adding

In adding up to price, the quantity of a good bought throughout a given period is recognized by: (1) Income. (2) Tastes and preferences. (3) Numbers of buyers in market. (4) Prices of associated goods. (e) All of above. Can someone

Q : Bank rate on money supply What will be

What will be the consequence of a rise or fall in the bank rate on money supply? Answer: It will reduce or raise the money supply.

Q : Wage Rate and Exploitation problem

Assume that a firm possessesing both monopsony power as the employer and market power in its output market, however that can neither wage neither discriminate nor price discriminate. In equilibrium, in its labor market for workers, of the given variables the lowest va

Q : Problem of dockworkers on hiking the pay

When you were in the ski boat business, your net revenues from selling given numbers of boats would be least influenced by: (i) Govt. increasing fees for boat licenses. (ii) Rises in prices for jet skis. (iii) Pay hikes for dock-workers. (iv) Vacation

Q : Categorized Economic Capital Your

Your family’s home can produce the service of shelter across several years, therefore from the vantage point of economics; your home can most rationally be categorized as: (1) a financial investment. (2) a fixed cost resource. (3) economic capit

Q : Consideration of positive statement

Choose the right answer . A positive statement is concerned with: A) some goal that is desirable to society. B) what should be. C) what is. D) the formulation of economic policy.

Q : Severe Poverty of Demography From the

From the 1950 year, severe poverty has declined most sharply in between people while they experience: (w) low levels of education. (x) discrimination in employment. (y) old age. (z) poor health. Can someone explain

Q : Older or disabled poverty The

The proportion of older or disabled Americans suffering throughout severe poverty has been most sharply decreased due to such programs as: (w) Social Security and Medicare. (x) negative income taxes. (y) food stamps and subsidized housing. (z) the Emp

Q : Profit maximization of an output level

Profit is maximized when this brickyard manufactures an output level of: (1) 6,000 generic bricks daily. (2) 7,000 generic bricks daily. (3) 15,000 generic bricks daily. (4) 17,000 generic bricks daily. (5) 20,000 generic bricks daily.

Discover Q & A

Leading Solution Library

Avail More Than 1445962 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1951303
Asked

3,689

Active Tutors

1445962

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment