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The general rule when a perfectly competitive firm should shut down in the short run is when price is?
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Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
When should a perfectly competitive firm should expand output?
when price>marginal cost
Does a perfectly competitive market demonstrate the need for subsidies and price ceilings?
no
What will happen if an individual perfectly competitive firm charges a price above the industry equilibrium price?
If an individual in a perfectly competitive firm charges a price above the industry equilibrium price this is bad. This company will go out of business quickly because their customers will go find the lower price.
In a perfectly competitive market individual consumers have .?
no influence over determining price
In a perfectly competitive market, individual consumers have _____.?
no influence over determining price
What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
Bob and john are oligopolists in the market for ice cream. If Bob and John engage in a price war will the price of ice cream in their town be closer to Perfectly competitive market or a monopolistic?
Perfectly competitive, because both firms will compete to earn a greater market share (they are "price takers"), leading to prices that more closely resemble a perfectly competitive market than a monopolistic market (one dominant "price making" firm).
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
Why does a perfectly competitive require many participants as both buyers and sellers?
So no individual can control the price.
Why does a perfectly competitive market require many participants as both buyers?
so no individual can control the price
In a perfectly free competitive market no buyer or seller has the power to significantly affect the price of a good.?
This is true
