perfect competition

(a)Outline the conditions necessary for a marketplace holding to be dead warlike,. .)no of households in the industry:the greater the no. of blind drunks the more it impart be towards perfect competiton,in a perfectively competitory market at that place argon many wets in the industry all producing equalise returns,in this structure there is no need for individual firms to vex actively against each other,since whizz firms ability to sell its point of intersection does not depend on the behaviour of the other firm,for e.g. yorkhshire and somerset farmers operate in a perfectly competitive market over which they have no power.competitive behaviour in round language refers to the degree to which individual firms actively compete with iodin another,for e.g. shell and bp certainly engage in competitive behaviour,both companies thus far have some real power over their market.either firm could raise its prices and still continue to attract customers,e ach has the power to decide,within limits indicate by buyers tastes and prices of competing products,the price tht ppl will pay for their oil and petrol.ao although they actively compete with each other they do so in a market tht does not have a competitively market structure.

in contrast the Yorkshire and Somerset farmers donot engage in competitive behaviour becoz the only way tht they can walk out their tax is changing by their outputs of(or their costs of producing)wheat. 2)in a competively competitive market there is complete freedom of entry and exit,as there atomic number 18 no sunk costs incurred by t he firm plot of land leaving the industry a! nd there are no higher(prenominal) capital costs to enter the industry.sunk costs are those losses incurred by the firm at a time they had invested into the business finished their intial inauguration capital in machinery buildings etc,there is more of a absent and live on competition where firms enter the industry in collection to make profits n leave once the profit has been made.in perfect competitions all the ternary types of profits abnormal,Normal and...If you indirect request to get a full essay, order it on our website: OrderCustomPaper.com

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