1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm...

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1) What are the requirements for perfect competition?

2) Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point.

3) In the long run, perfectly competitive firms cannot make an economic profit. Why?

4) Describe how economic losses are eliminated in a perfectly competitive industry.

Related Book For answer-question

Introduction to Risk Management and Insurance

ISBN: 978-0131394124

10th edition

Authors: Mark S. Dorfman, David Cather

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Posted Date: Feb 23, 2024 01:20 AM

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1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm...

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1 Perfect competition requires many buyers and sellers identical products free entry and exit from t... View the full answer

Introduction to Risk Management and Insurance

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