1. If an industry is perfectly competitive then a single producer is a price taker? Why? Explain with examples.
2. What is the supply curve of a perfectly competitive firm? Is it different from that of the market supply curve? Explain with examples© BrainMass Inc. brainmass.com October 25, 2018, 9:45 am ad1c9bdddf
1. In a perfectly competitive market, there are many producers. Each producer is a price taker. They cannot influence the market price because each of them is too small. For example the market price is $1.00 and there are 1,000 producers in the market. If a producer increase the price to $1.10, consumers will not buy from this ...
This solution discusses competitive markets, and defines the conditions for a perfectly competitive industry. It also explains the supply curve of a perfectly competitive firm and how it differs from the market supply curve with examples.
Is the agricultural industry perfectly competitive? Use economic rationale to explain why or why not?View Full Posting Details