What are some of the benefits of perfect competition?
What will be an ideal response?
The primary benefit of perfect competition is that it leads to the production of goods that buyers want and are willing to pay for the production of. Also, perfect competition reduces the costs of production so that society's scarce resources are not wasted.
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In perfect competition, if the market price of the product is initially higher than the minimum average total cost faced by the firms, then
A. other firms will enter the industry and the industry supply will decrease. B. other firms will enter the industry and the industry supply will increase. C. some firms will exit the industry and the industry supply will decrease. D. some firms will exit the industry and the industry supply will increase.
Refer to the table below. If Gorgeous Sands Resort produces the profit-maximizing number of resorts and charges the profit-maximizing price, what is their profit during the peak-period?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) $187,500
B) $500,000
C) $300,000
D) $457,500
When purchasing a future contract, the buyer of a futures contract:
A. agrees to pay the seller later where the payment is based on the future price of some asset. B. assumes very little risk of the future price fluctuation of some asset. C. must pay a set amount to the seller regardless of what the future price turns out to be. D. none of these are true.
Credit:
A. predates coinage by 2,000 years. B. did not exist until the middle ages. C. probably came into being at the same time as coinage. D. first became popular due to the writings of Aristotle.