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perfectly competitive market
Essay specific features
Written by:
Hazel R
Date added:
October 28, 2015
Level:
University
Grade:
A
No of pages / words:
3 / 751
Was viewed:
9517 times
Rating of current essay:
Essay content:
The output of each firm, when it is producing at its minimum long-run average total cost, is a small fraction of the industry's total output.
Assumption 4. Each firm is a price-taker. This means that each firm can alter its output without significantly affecting the market price of its product. Each firm must passively accept the existing market price, but it can sell as much as it wants at that price...
displayed 300 characters
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Each firm must passively accept the existing market price, but it can sell as much as it wants at that price.
Assumption 5. There is freedom of entry and exit, which means that any new firm is free to enter the industry and start producing if it so wishes, and any existing firm is free to cease production and leave the industry...
displayed 300 characters
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