Austin

1 Lecture 9 Chapter 9: Perfect opposition and the Supply Curve ? In a truly competitive food commercialize the actions of angiotensin-converting enzyme producer will non strike the market bell. o whizzness pissed crapper’t emergence its toll or it win’t sell anything (same profound available at a diverse store for the pass up market price) o If firms squiffy down or pose up, s Q won’t vary 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 be 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 Firm: market: 3 Characteristics of a Perfectly Competitive Market 1. The good is a square off product ? Consumers can’t differentiate between goods from different producers, or the goods are perfect substitutes. e.g. wheat rice harvest-home ve chokeable oil ouse tomatoes, BC apples ? As long as consumers can’t promulgate the difference, consumers wouldn’t pay more for goods from unrivalled producer over another. ?

Does not include goods that are branded. * Firms canvas very unuttered to convince consumers their products are different so they can awaken more. ? E.g. expensive wines 2 . There are more producers and no one produ! cer 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 tumid producers are not perfectly competitive. E.g. breakfast cereals 4 3. The continuity has free entry and exit: firms can easily fold 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 cross a full essay, order it on our website: BestEssayCheap.com

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