Perfect Competition: sample question

Related BrainMass Solutions

• Define the terms: Long run and short run

  " ( Microeconomics - Perfect Competition - Short Run Shut Down, Econweb's Introductory Microeconomics - Perfect Competition, www.econweb.com/Sample/PerfectCompetition/ShutDownSR7.html ) The long-run "The long-run is therefore the period of time

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  This is true both for perfect and imperfect competition. Thus the firm should increase its output till MR=MC. A multiple choice question on marginal revenue, marginal cost and maximum profit rule has been answered and explained.

• Monopolistic Competition

  This means that an individual firm's demand curve is downward sloping, in contrast to perfect competition, which has a perfectly elastic demand schedule. The solution answers the question below in great detail.

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• The health care industry as an imperfect market

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• Perfect competition and social welfare

  For the second part of the question: Refer to the attachment for a graph showing output and pricing decision for a monopoly and perfect competition firms with the same course structure.

• Oligopoly, monopolistic competition in short run & long run

  There is excess capacity in monopolistic competition in the long run. In monopolistic competition, output is less than the efficient scale of perfect competition.

• Bertrand Competition

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• Conditions of a Perfectly Competitive Market

  Hello Student, In order to answer this question, the first thing that you may want to do is define what perfect competition is; after which you can look at what the general characteristics of a perfectly competitive firm are.