Business, 04.04.2020 13:49 geckos7992

Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run.

Answers: 3

Show answers

Answers

Answer from: layshjjbradshaw7250

Explanation:

The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.

Perfect competition refers to a

situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.

In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.

Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.

The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.

Answer from: venegas122916

Perfectly competitive firm means that there are many buyers (consumers) and sellers (producers) in the market and none of the companies can control the pricing (they are price takers).

Explanation:

Characteristics of a perfectly competitive firm.

1. Many buyers and sellers

2.No transaction cost

3. As for new entrants into the market, there are no barriers for them to enter the market

4.Products are undifferentiated ( identical )

5. There is perfect information concerning the pricing of the good

Examples of perfectly competitive firms

1. Foreign exchange markets

The currency is undifferentiated, it's identical in all trading platforms.

If you are a trader you have access to many buyers and sellers.

Information about the prices are available and accurate.

Answer from: Quest

u = 30

continuing your method

$\frac{1}{10}$ = $\frac{1}{u}$ + $\frac{1}{15}$

subtract $\frac{1}{15}$ from both sides

$\frac{1}{u}$ = $\frac{1}{10}$ - $\frac{1}{15}$ thus

$\frac{1}{u}$ = $\frac{3}{30}$ - $\frac{2}{30}$

$\frac{1}{u}$ = $\frac{1}{30}$ ⇒ u = 30

Answer from: Quest

answer/// the grapefruit that guarantees you will loss five pounds a week;

Another question on Business

Business, 22.06.2019 15:00

1. list five staple convenience goods that you or your household buys on a regular basis. (you do not need to use complete sentences. 2.5 points) 2. list three impulse convenience goods that you or someone you know has purchased. (you do not need to use complete sentences. 2.5 points) 3. describe a shopping good that you or someone you know purchased. what kind of research did you or that person do before buying the product? (1-5 sentences. 3.0 points) 4. choose an example of a company you could start, and decide which business structure would make the most sense for that type of company (sole proprietorship, partnership, llc, c corporation, s corporation, or nonprofit corporation). explain why this structure would be good for this type of company. give at least 3 reasons. (3-6 sentences. 6.0 points) 5. if you were starting a new business, describe at least three departments to the company that you would need right away. why are these departments so important? (1-5 sentences. 3.0 points) 6. describe a product that you think has saturated its market. what makes you think it has saturated its market? (1-5 sentences. 3.0 points)

Answers: 2

Answer

Business, 22.06.2019 19:30

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above

Answers: 2

Answer

Business, 22.06.2019 19:50

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:

Answers: 1

Answer

Business, 22.06.2019 23:20

Nnette henri is paid an hourly wage of $8.90 for a 32-hour workweek of 4 days, 8 hours daily. for any work on the fifth day and on saturdays, she is paid one and one-half times her regular hourly rate. during a certain week, in addition to her regular 32 hours, henri worked 6 hours on the fifth day and 5 hours on saturday. for this workweek, henri’s total earnings are:

Answers: 1

Answer

You know the right answer?

Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entra...

Questions