Perfect competition and the supply curve - perfect competition
5 important questions on Perfect competition and the supply curve - perfect competition
What is a producer when its actions cannot affect the market price of goods it sells? Is is the market price varied or given?
- a price taking producer
- this producer considers market price as given
What do we call a consumer that cannot influence the market price of the good by his or her actions.
What are the to necessary conditions for prefect competition
- The industry must contain many producers each having a small market share
- the industry must produce a standardized product
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What kind of obstacles could be posed for entry and exit?
limited access to key resources
For free entry and exit are there additional costs associated with shutting down a company and leaving the industry?
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