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प्रश्न
Explain the implications of the following : Perfect knowledge in perfect competition.
उत्तर
Perfect knowledge in perfect competition:-
Buyers and sellers are completely aware of the existing price in the market. As they deal with homogenous products, they will not be able to charge different prices from different buyers. If the firms try to charge higher price for their products, then the sellers will immediately shift to different firms selling at lower prices. Hence, firms cannot change their price and take the price determined by the industry. They are only price takers but not price makers.
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संबंधित प्रश्न
Explain ‘large number of buyers and sellers' features of a perfectly competitive market.
What is a price taker firm?
Explain Perfect knowledge about the markets feature of perfect competition.
Under which market form is a firm a price taker?
Why can a firm not earn abnormal profits under perfect competition in the long run? Explain.
In which market form can a firm not influence the price of the product?
Explain how price is determined in a perfectly competitive market with fixed number of firms.
Show with the help of a diagram, how a perfectly competitive firm earns a normal profit in short-run equilibrium.
Answer the following question.
Is a firm under perfect competition a price taker, or a price maker? Justify your answer.
Identify the market form and explain the corresponding feature, as given in the following statement:
"The commodity in this market has attributes which are identical for sellers and buyers."
Choose the correct answer from given options
A firm is not a price maker under
Under Perfect Competition, a firm will enjoy normal profit in the long run even if it enjoys supernormal profit in the short run. Explain.
Explain the short-run equilibrium of a firm facing losses under Perfect Competition.
How is Total Revenue under perfect competition different from Total Revenue under imperfect competition? Give two points to show the difference.
A perfectly competitive firm always enjoys normal profit in the long run, irrespective of the situation it faces in the short run. Discuss the statement in brief.
A car company ‘W’ hired an international cricket player for its endorsement in India, while two other car companies’ ‘Y’ and ‘R’ hired two famous Bollywood film stars for this purpose. Explain the features of the competitive market indicated above.
