Questions tagged [perfect-competition]

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1answer
51 views

Microeconomics question

I'm given this question. I'm not sure if I'm doing it right. Can any one help? ...
3
votes
2answers
1k views

Why does a firm make profit in a perfect competition market

I'm solving a problem about $n=180$ firms in a perfect competition market, where demand is given by $D(p)=100-5p$. A firm's cost function is $c(q_i) = 2 \cdot (q_i)^2$. Using $p = c'(q_i)$ and the ...
7
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3answers
690 views

Long Term Economic Profit for Perfectly Competitive market

When we consider a perfectly competitive market, in the short run we will run a firm if the total economic profit though negative till price is above shutdown point.In long run we will run at an ...
0
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0answers
18 views

Demand and marginal revenue evolution from Monopoly to Perfect Competition as new competitors enter the market (Graphs)

I want to ask if anyone know how the curves of Marginal Revenue and Demand "evolve" from Monopoly to Perfect competition on a graph of a firm as new competitors enter the market. I would ...
0
votes
1answer
24 views

Is the minimum of short run average cost equal to the minimum of long run average cost?

I understand that for perfect competition, the price is equal to minimum short and long run average cost in the long run as there cannot be any supernormal profits. Does this mean that the short run ...
1
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2answers
124 views

Does the minimum of short-run average cost equal the minimum of long-run average cost in the long run for perfect competition?

I was recently reading this resource (http://www2.econ.iastate.edu/classes/econ101/hallam/Comp_LongRun_HND.pdf) which states that in the long run for perfect competition, price is equal to both the ...