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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.
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Under which market form is a firm a price taker?
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Explain how price is determined in a perfectly competitive market with fixed number of firms.
What are the characteristics of a perfectly competitive market?
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:
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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.
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