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108139
Perfect Competition
Descrição
A-Levels Economics Mapa Mental sobre Perfect Competition, criado por cdsmith123 em 25-05-2013.
Sem etiquetas
economics
economics
a-levels
Mapa Mental por
cdsmith123
, atualizado more than 1 year ago
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Criado por
cdsmith123
mais de 11 anos atrás
167
1
0
Resumo de Recurso
Perfect Competition
ASSUMPTIONS
LARGE NUMBER OF BUYERS+SELLERS - NO INDIVIDUAL CAN ALTER THE MARKET PRICE
PERFECT INFORMATION OF ALL PRODUCTS
EQUAL ACCESS TO TECHNOLOGY
HOMOGENEOUS PRODUCTS
NO BARRIERS TO ENTRY OR EXIT
PERFECTLY MOBILE FACTORS OF PRODUCTION
LONG RUN = profits cannot be made
firm would be competed away
produce at market clearing price
ATC=MC
SHORT RUN = If ATC is below market clearing price
Abnormal profits made
signals to other firms to enter market
supply increase = price set below market clearing = ATC=MC
LONG RUN = firms statically efficient
both productively + allocatively efficient at the same time
Firms being making losses
supply reduces
price increases
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