Which of the following describes a characteristic of a perfectly competitive market quizlet?

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Which of the following is a characteristic of a perfectly competitive markets?
Which of the following is characteristics of a perfectly competitive market quizlet?
What are the characteristics of perfectly competition?
Which of the following describes a characteristic of a perfectly competitive market group of answer choices?

Principles of Economics

7th EditionN. Gregory Mankiw

1,394 solutions

Principles of Economics

8th EditionN. Gregory Mankiw

1,335 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,009 solutions

Fundamentals of Engineering Economic Analysis

1st EditionDavid Besanko, Mark Shanley, Scott Schaefer

215 solutions

Fundamentals of Engineering Economic Analysis

1st EditionDavid Besanko, Mark Shanley, Scott Schaefer

215 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,009 solutions

Statistical Techniques in Business and Economics

15th EditionDouglas A. Lind, Samuel A. Wathen, William G. Marchal

1,236 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Terms in this set (32)

As a perfectly competitive firm produces a greater quantity of output, its total revenue steadily increases at a constant rate determined by the given market price. Profits will be highest (or losses will be smallest) at the quantity of output
where total revenues exceed total costs by the greatest amount (or where total revenues fall short of total costs by the smallest amount). Alternatively, profits will be highest where marginal revenue, which is price for a perfectly competitive firm, is equal to marginal cost. If the market price faced by a perfectly competitive firm is above average cost at the profit-maximizing quantity of output, then the firm is making profits. If the market price is below average cost at the profit-maximizing quantity of output, then the firm is making losses. If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. The point where the marginal cost curve crosses the average cost curve, at the minimum of the average cost curve, is called the "zero profit point." If the market price faced by a perfectly competitive firm is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately. If the market price faced by a perfectly competitive firm is above average variable cost, but below average cost, then the firm should continue producing in the short run, but exit in the long run. The point where the marginal cost curve crosses the average variable cost curve is called the shutdown point.

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Principles of Economics

8th EditionN. Gregory Mankiw

1,335 solutions

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,009 solutions

Statistical Techniques in Business and Economics

15th EditionDouglas A. Lind, Samuel A. Wathen, William G. Marchal

1,236 solutions

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

Which of the following is a characteristic of a perfectly competitive markets?

The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit.

Which of the following is characteristics of a perfectly competitive market quizlet?

There are three main characteristics in a perfectly competitive market: 1) many buyers and sellers, 2) Consumers believe that all firms in perfectly competitive markets sell identical (or homogeneous) products. 3) It's very easy to enter and exit the specific market.

What are the characteristics of perfectly competition?

Following are the characteristics of perfect competition:.

Large numbers of buyers and sellers in the market..

Free entry and exit of firms in the market..

Each firm should be selling a homogeneous product..

Buyers and sellers should possess complete knowledge of the market..

No price control..

Which of the following describes a characteristic of a perfectly competitive market group of answer choices?

Answer and Explanation: The correct answer is option c. Firms can exit and enter the market freely. A perfectly competitive market is a theoretical market where firms can enter and exit the market freely or without cost.