State one characteristic of a perfectly competitive market
Answers
Answer:
characteristics of perfectly competitive market are-
• Many Competing Firms.
• Similar Products Sold.
• Equal Market Share.
• Buyers have full information.
• Ease of Entry and Exit.
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Answer:
perfectly competitive market is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entry and exit, and perfect information about the price of a good.
The total revenue for a firm in a perfectly competitive market is the product of price and quantity (TR = P * Q). The average revenue is calculated by dividing total revenue by quantity. Marginal revenue is calculated by dividing the change in total revenue by change in quantity.
A firm in a competitive market tries to maximize profits. In the short-run, it is possible for a firm’s economic profits to be positive, negative, or zero. Economic profits will be zero in the long-run