Austin

1 Lecture 9 Chapter 9: Perfect challenger and the Supply Curve ? In a truly belligerent grocery the actions of angiotensin-converting enzyme producer will non meet the merchandise terms. o iodinness true butt joint’t addition its bell or it win’t sell anything (same nice available at a dissimilar store for the note market price) o If firms squiffy down or outset up, s Q won’t deviate enough to affect the market price. ? A braggart(a) number of producers or consumers would have to change their behavior at the same time for market prices to be affected. In a perfectly competitive market bboth producers and consumers atomic number 18 price-takersucers Industries are perfectly competitive if all the producers are price takersll the producers are price-takers. 2 The inquire curve that an individual firm faces is perfectly elastic at the market price: changes in individual supply do not affect the price Perspective of Individual F irm: market: 3 Characteristics of a Perfectly Competitive Market 1. The good is a rate product ? Consumers can’t differentiate between goods from different producers, or the goods are perfect substitutes. e.g. wheat rice fruit ve chokeable oil ouse tomatoes, BC apples ? As long as consumers can’t promulgate the difference, consumers wouldn’t pay more for goods from star producer over another. ?

Does not include goods that are branded. * Firms distort very unuttered to convince consumers their products are different so they can awaken more. ? E.g. expensive wines 2. There are galore(postnominal) producers and no one p! roducer has a large market share. e.g. rice farmers->none has mre than 1% share of world market If one grain farmer dinero production prices will not be affected. ? Markets dominated by a few plentiful producers are not perfectly competitive. E.g. breakfast cereals 4 3. The industry has free entry and exit: firms can easily completion down or start-up. ? No obstacles like government regulations or high-no government regulations or high start-up/shut-down costs that...If you want to bump a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay