Summary on perfect competition
Talk about the characteristics of perfect competition
many firms
easy entry and exit
goods are indentical
no advertising
price takers-no control over price
Talk about results in the short run
Marginal revenue will equal marginal cost
The firm is perfectly elastic meaning it’s sensitive to a price change
At optimal point MR = MC
At approval point Price = Marginal cost
Talk about what happens in Long run and what those results are
MARGINAL COST =ATC
if profits are greater than 0 leads to more firms until profits =0
Just a 500 word summary doesn’t need any sources or citing
Write a summary on perfect competition and talk about the characteristics of perfect competition.Write a 500 word summary that doesn’t need any sources or citing
