Question: What does it mean to say that: A firm operating under perfect competition conditions is a price taker? Why Can't this firm set any price

What does it mean to say that: "A firm operating under perfect competition conditions is a price taker"? Why Can't this firm set any price it chooses? What if it operates in a monopolistically competitive market, would it be able to set the price? Why Give some examples to support your answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance....

1. What does it mean to say that: "A firm operating under perfect competition conditions is a price taker"? Why Can't this firm set any price it chooses? What if it operates in a monopolistically...

What does it mean to say that: "A firm operating under perfect competition conditions is a price taker"? Why Can't this firm set any price it chooses? What if it operates in a monopolistically...

6. What does it mean to say that: "A firm operating under perfect competition conditions is a price taker"? Why Can't this firm set any price it chooses? What if it operates in a monopolistically...

Help answer the following problems...all parts needs to be done 1. (a) (b) (b) (In) (E) (1) (\"1 Dene the economic terms: individual (firm) supply; market supply. Explain. with the aid of labelled...

1. The Following table shows total cost (TC) of a kid selling lemonade, where the lemonade market is considered "Competitive" market. Answer all following questions: Quantity of Output Total Cost $ 0...

CAS EC 505 Mathematics for Economics Assignment 4 . Let F': R?>> R be the implicit expression: F(z) = 23 + 2229 222 1029 = 0. (a) Verify that the curve traced by F (z) passes through the point z =...

q23 and q24 please..thank you 23. In perfect competition firms set price equal to price. Why can't firms do this when there are internal economies of scale? Internal economies of scale imply that the...

Indicate whether each of the following statements is true or false and explain why. a. A competitive firm that is incurring a loss should immediately cease operations. b. A pure monopoly does not...

2. Indicate whether each of the following statements is true or false and explain why. A competitive firm that is incurring a loss should immediately cease operations. A pure monopoly does not have...

Please use the two datasets/information given to solve the question. Show all your workings. Merton Financial: Data Storage & Protection Review Project Financials Total costs: Days billed VAT 18%...

Outline the steps in the synthesis of the tripeptide KFA using the SPPS procedure.

La gestin efectiva en una organizacin implica tomar decisiones basadas nicamente en beneficios econmicos a corto plazo, sin considerar el impacto tico en todas las partes interesadas. Pregunta...

1. How is performance management at DMG world media different from traditional performance management systems at other companies? 2. What was the impetus for developing a different performance...

Tim Peterman, director of logistics at Cameron Power Equipment in Charlotte, North Carolina, was evaluating the future of the company's warehouse in Atlanta, Georgia. The vice president of logistics,...

Adam, Barbara and Charlotte formed the equal ABC partnership; Adam and Barbara each contributed cash of $100,000 and Charlotte contributed land worth $130,000 with a basis of $120,000 and subject to...

An FRA market maker sells a EUR 100 million 3v6 FRA at a rate of 7.52%. He is exposed to the risk that interest rates will have risen by the FRA settlement date in three months' time. a. b. The...

9. In a reheat cycle steam at 15 MPa, 540C enters the engine and expands to 1.95 MPa At this point the steam is withdrawn and passed through a reheater. It reenters the engine at 540C. Expansion now...

Problem 1 1. (3 marks) Write the continuity and the Navier-Stokes equations for a uni-dimensional flow in a finite domain (i.e. the space variable is x E [O, L] E R) together with some boundary and...

One important source of person needs assessment information is the potential trainees own opinions about their developmental needs. What are the advantages and disadvantages of relying on such...

Why is needs assessment so often not performed in many organizations? How could an HRD professional encourage a reluctant manager or executive to approve the time and resources necessary for a needs...

What is your response to The attack on ISD (presented in the boxed insert)? If you were an HRD professional seeking to conduct a needs assessment, how would you respond to each of these issues?