perfect competition

(a)Outline the conditions necessary for a foodstuff conduct to be dead warlike,. .)no of households in the industry:the greater the no. of trues the more it impart be towards perfect competiton,in a perfectively belligerent market at that place are many blottos in the industry all producing equalize returns,in this structure there is no need for individual firms to scrap actively against each other,since whizz firms ability to sell its harvest-festival does not depend on the behaviour of the other firm,for e.g. yorkhshire and somerset farmers operate in a perfectly competitive market over which they have no power.competitive behaviour in purpose language refers to the degree to which individual firms actively compete with integrity another,for e.g. shell and bp certainly engage in competitive behaviour,both companies also have some real power over their market.either firm could raise its prices and still continue to attract customers,each has the power to decide,within limits condition by buyers tastes and prices of competing products,the price tht ppl will pay for their oil and petrol.ao although they actively compete with each other they do so in a market tht does not have a competitively market structure.

in contrast the Yorkshire and Somerset farmers donot engage in competitive behaviour becoz the only way tht they can get rid of their tax is changing by their outputs of(or their costs of producing)wheat. 2)in a competively competitive market there is complete freedom of entry and exit,as there are no sunk costs incurred by the firm plot of land leaving the industry and there are no ! higher(prenominal) capital costs to enter the industry.sunk costs are those losses incurred by the firm one time they had invested into the business finished their intial inauguration capital in machinery buildings etc,there is more of a hit and live on competition where firms enter the industry in collection to make profits n leave once the profit has been made.in perfect competitions all the ternary types of profits abnormal,Normal and...If you insufficiency to get a full essay, order it on our website: OrderCustomPaper.com

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