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What are the differences between monopolistically competitive and purely competitive?
Monopoly is complete control i.e. buying all compeitors and suppliers, while plain compeition is an example of darwinism where the strongest survive but the compeition causes the prices to remain relatively low because companies want to sell their goods.
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The representative firm in a purely competitive industry?
will
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
In long run equilibrium a purely competitive firm will operate where price is?
nn
In the long run in a purely competitive industry entry and exit of firms can occur. True Or False?
True
What market characteristics suggests that purely competitive firms have only weak incentives to innovate?
Economies of scale
The representative firm in a purely competitive industry?
will
Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
In long run equilibrium a purely competitive firm will operate where price is?
nn
A firm operating in a purely competitive resource market faces a resource supply curve that is?
B. Perfectly elastic This is because it is operating in a perfect competitive market
In the long run in a purely competitive industry entry and exit of firms can occur. True Or False?
True
What does the word Pashu mean?
Jealously guarding something that is of no value to yourself driven by a purely competitive nature
What market characteristics suggests that purely competitive firms have only weak incentives to innovate?
Economies of scale
A purely competitive firm is precluded from making economic profit in the long run because?
it is a price taker
If a purely competitive constant-cost industry is realizing economic profits you can expect industry supply to?
Remains the same...
What are the styles of negotiation?
Two styles of negotiating, competitive and cooperative, are commonly recognized. No negotiation is purely one type or the other.
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
Why can price be substituted for marginal revenue in the MR equals MC rule?
It can be substituted because the industry would become purely competitive.
