Question

Advantages and disadvantages of a perfect competition

Answer 1

ADVANTAGES AND DISADVANTAGES OFPERFECTLY COMPETITIVE FIRM.
DV NT GES OF PERFECTLY COMPETITIVE FIRM
Firms always achie
.
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Efficient allocation happen when the price of the goods is equal to themarginal cost that produce the goods which is P = MC. - When the price is equal to the marginal cost, this means that all theconsumers already enjoy the goods without sacrifice the others with high alues.Economic resources are allocated to produce goods of the highest alue and theleel of social welfare is at its ma!imum. - "n a perfectly competitie mar#et, the supply cure for the firm formed from themarginal cost. Therefore, the mar#et supply cure is a combination of the marginalcost curbes of the producers in the market.
Firms always achieve eicie!" $r#%&c"i#!.
- &irm production efficiency refers to the a%ility of firms to produce goods at theminimum aerage cost. - "n the long run, perfectly competitie firms earn only normal profit at theequili%rium point.

Answer 2

hola there


First and foremost advantage ofperfect competition is that chances of consumer exploitation is very low in case of this type of market structure because inperfect competition sellers do not have any monopoly pricing power and hence they cannot influence the price of product or charge higher than normal price from