What prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?
Question:
What prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (4 reviews)
In a perfectly competitive market firms are price takers which means they have no control over the price of their product The price is determined by t...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
-
Multiple Choice Questions 1. Which of the following is false about perfect competition? a. Perfectly competitive firms sell homogeneous products. b. A perfectly competitive industry allows easy entry...
-
Multiple Choice Questions 1. In the long run, which of the following outcomes is most likely for a firm? a. Zero accounting profits but positive economic profits b. Zero accounting profits c....
-
By a work sampling study: Observed Data The machine is being used Proportion of manual labour (machine is running and/or (servicing time) T-% machine is random serviced) Allowance Time Proportion of...
-
How does the Pygmalion effect relate to fraud prevention?
-
Petersen Stores invested in $100,000 of face amount of 4-year bonds issued by Erik Food Supply Company on January 1, 20X1. The bonds were purchased at 98, and bear interest at a stated rate of 8% per...
-
Summarize the race system of Brazil and compare it to that of the United States.
-
The stockholders equity accounts of Ashley Corporation on January 1, 2012, were as follows. Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized)..... $ 400,000 Common Stock ($1 stated...
-
A network engineer wants to simplify network and security services. How could Secure Access Service Edge (SASE) help to simplify these services for the engineer?
-
How does a perfectly competitive firm calculate total revenue?
-
How does a perfectly competitive firm decide what price to charge?
-
Ethics expert Kirk O. Hanson has identified six ethical dilemmas every professional faces, including What Is Worthwhile Work? In thinking about that question, Hanson mentions a number of...
-
Houston Health insurance company currently adopts a zero-debt financing. Its operating income (EBIT) is $2 million, and its tax bracket is at the 40 percent rate. It has 6 million in assets and...
-
Discussion Prompts What tools would you use for the following situations? Tracking central line infections Investigating possible causes of infection Identifying areas of improvement How should the...
-
Marshall Inc. recently hired your consulting firm to improve the company's performance. It has been highly profitable but has been experiencing cash shortages due to its high growth rate. As one part...
-
You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: Year-End Cash Flows (S thousands) Project Playhouse (minor project) Fort...
-
A 18-month forward contract on a non-dividend-paying stock is entered into when the price of a stock is $35 and prevailing 18-month continuous compounding risk-free interest rate is 3%. How can an...
-
The following data represent the ages of the winners of the Academy Award for Best Actor for the years 20042009. 004: Jamie Foxx ...........37 2005: Philip Seymour Hoffman .....38 2006: Forest...
-
X-1 Find the domain of the function f(x) : x 1 2 - O (-00, -1) U (-1, ) O (-00, 1) U (1, ) O -00, -1) U (-1, 1) U (1, 0) O (- 1, 1)
-
Why is it important to have a very sound and well-developed internal control structure?
-
Which of the following is not considered to be part of the internal control structure of a company? A. Ensure that assets are kept secure. B. Monitor operations of the organization to ensure maximum...
-
The vice president of finance asks the accounts payable (AP) clerk to write a check in the name of the president for $10,000. He and the president will sign the check (two signatures needed on a...
-
1. Why might a consumer be "rationally ignorant" about the proper therapy for gallstones? 2. Why do demand curves slope down (i.e., sales volume usually rises at lower prices)? 3. Why would...
-
(a) Prove that if pure strategy is strictly dominated, then so is any ( mixed ) strategy that plays is with positive probability. ( b ) Prove that in 2 - player games, the maximin payoff of one...
-
When analyzing financial statements, what is the class of ratios that indicates an organization's ability to meet its long-term financial obligations? When performing variance analysis of nurse...
Study smarter with the SolutionInn App