n perfect competition, what is the relationship between the demand for the firm’s output and the market demand? and pls give a simple scenario or example.
n perfect competition, what is the relationship between the demand for the firm’s output and the market demand? and pls give a simple scenario or example.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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and pls give a simple scenario or example.
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Step 1
In perfect competition,
There are a large number of sellers and buyers, each buyer and seller has an insignificant market share, none of them can impact the market.
Sellers have no control over the market prices. The individual firm's equilibrium quantity of output will be completely determined by the output firms decided to supply.
Free entry and exit.
No selling cost
Homogeneous products, and producers, and consumers have perfect knowledge of the market.
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