What is the condition of profit maximisation under perfect competition?
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Heya...
Under perfect competition there is no price control by seller ....
So profit maximization can be possible only in long run....
Suppose in a perfect competition new industries are set up then supply increases and price decreases so newly established firm will withdrawal due to less profit but with their withdrawal existing supply will reduce and existing old firms gets more profit in long run...
Under perfect competition there is no price control by seller ....
So profit maximization can be possible only in long run....
Suppose in a perfect competition new industries are set up then supply increases and price decreases so newly established firm will withdrawal due to less profit but with their withdrawal existing supply will reduce and existing old firms gets more profit in long run...
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