Purchase Solution

Price charging ability in perfect competition

Not what you're looking for?

Ask Custom Question

Why will a firm in a perfectly competitive industry choose not to charge a price either above or below the market price?

Purchase this Solution

Solution Summary

The solution explains why firms in a competitive industry chose to charge only market price.

Solution Preview

The firms in a perfectly competitive market are price takers and do not have any influence on the price. The firm faces a demand curve that is perfectly elastic ...

Purchase this Solution

Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.