Questions tagged [perfect-competition]

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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
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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
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1answer
20 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
vote
2answers
98 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 ...