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Market Structure
Essay specific features
Written by:
Helen R
Date added:
March 30, 2014
Level:
University
Grade:
A
No of pages / words:
3 / 804
Was viewed:
4164 times
Rating of current essay:
Essay content:
(2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant information about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit.
A pure competitive firm is a price taker. A price taker is a seller that does not have the ability to control the price of the product it sells; it takes the price determined in the market...
displayed 300 characters
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A price taker is a seller that does not have the ability to control the price of the product it sells; it takes the price determined in the market. The pure competitive firm is a price taker because a firm is restrained from being anything but a price taker if it finds itself one among many firms where its supply is small relative to the total market supply, and it sells a homogeneous product in a an environment where buyers and sellers have all relevant information...
displayed 300 characters
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