The transition from ‘brick and mortar’ to the digital economy raises a number of questions: Does the textbook model of perfect competition apply in virtual markets? provide answer with 1 example
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- You witnessed new firms entering a competitive market. What can you infer for the existing firms in that market?Looking around your city, what businesses do you think come closest to the model of a perfectly competitive market? Explain why this is the case using correct economic terms and concepts.What is then the use or relevance of the purely competitive model?
- Using the tools of economic analysis that you learned, analyze the behavior of the enterprise operating in the perfectly competitive market, in both the short and long term, if it achieves an economic loss in the short term.What is the relationship between economies of scale and the level of market competition?Who said “The customer experience is the next competitive battleground” ?
- George Stigler, "Perfect Competition, Historically Contemplated," Journal of Political Economy,Vol. 55, No. 1, (February 1957), pp. 1-17. Despite the fact that few firms sell identical products in markets where there are no barriers to entry, economists believe that the model of perfect competition is important because A. economists prefer studying theoretical markets instead of actual markets. B. all markets eventually become perfectly competitive. C. it is a benchmark—a market with the maximum possible competition—that economists use to evaluate actual markets that are not perfectly competitive. D. this is the type of market that our business laws protect and promote.Outline the characteristics of a perfect competition market that makes it different froman imperfect marketWhy are perfectly competitive markets considered economically efficient?
- Economics 1. Rob Doe just started a ice cream business within a perfectly competitive market. The new business man was told that he would charge a price that is equal to marginal revenue. The market clearing price for ice cream is $20 dollars per scoop. The total cost for producing ice cream is given by: Total cost = q2 + 100q + 500 where q is the number of ice cream produced in a typical day. a. How many ice cream should Rob choose to produce to maximize profit? b. Calculate Rob's maximum daily profit c. Graph these results, and label Rob's supply curveShow how could Market equilibrium be affected if the level of Technology is not used on effective way while the number of Consumers increased, ( the effect of Technology is higher than the other factor ) Enter your AnswerWhich of the following is NOT a requirement for a market to be perfectly competitive?
