what lessons can a manager learn by studying perfect competition market ?
Answers
THE LESSON OF BUSINESS STUDIES.
Answer:
A hypothetical extreme is a market where there is perfect competition. However, multiple rival companies providing remarkably identical products force producers in a number of industries to frequently behave as price takers.
Explanation:
Firms are said to be in perfect competition when the following conditions occur:
1. Numerous businesses make the same goods.
2. There are several customers and sellers who are willing to purchase the merchandise.
3. Both buyers and sellers have all the knowledge they need to decide logically whether to buy or sell a product.
4. Companies have complete freedom to enter and depart the market; in other words, there are no barriers to entry or exit.
Because competing firms pressure them to accept the market's current equilibrium price, a perfectly competitive firm is referred to as a price taker. A company will lose all of its sales to rivals if it increases the price of its product by even a penny in a highly competitive market.
A wheat grower must use a computer or tune in to the radio to find out what the current wheat price is. The market price is set completely by the forces of supply and demand across the board, not by any particular farmer. In order for a completely competitive firm to expand or decrease output without significantly altering the market's overall amount provided or price, it must also be a relatively small participant overall.
A hypothetical extreme is a market where there is perfect competition. However, multiple rival companies providing remarkably identical products force producers in a number of industries to frequently behave as price takers.
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Answer:
A hypothetical extreme is a market where there is perfect competition. However, multiple rival companies providing remarkably identical products force producers in a number of industries to frequently behave as price takers.
Explanation:
Firms are said to be in perfect competition when the following conditions occur:
1. Numerous businesses make the same goods.
2. There are several customers and sellers who are willing to purchase the merchandise.
3. Both buyers and sellers have all the knowledge they need to decide logically whether to buy or sell a product.
4. Companies have complete freedom to enter and depart the market; in other words, there are no barriers to entry or exit.
Because competing firms pressure them to accept the market's current equilibrium price, a perfectly competitive firm is referred to as a price taker. A company will lose all of its sales to rivals if it increases the price of its product by even a penny in a highly competitive market.
A wheat grower must use a computer or tune in to the radio to find out what the current wheat price is. The market price is set completely by the forces of supply and demand across the board, not by any particular farmer. In order for a completely competitive firm to expand or decrease output without significantly altering the market's overall amount provided or price, it must also be a relatively small participant overall.
A hypothetical extreme is a market where there is perfect competition. However, multiple rival companies providing remarkably identical products force producers in a number of industries to frequently behave as price takers.
For more details on Essay Writing, https://brainly.in/question/28301617
#SPJ1