AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Perfectly competitive curve shift12/24/2023 ![]() ![]() The main output decision for a price-taking firm is the decision of how many goods or services to sell. So long as a perfectly competitive firm is willing to sell at the market price, the firm can sell any number of units it wishes to sell. This price is called the market price-also called the equilibrium price or the market-clearing price. The firm must accept whatever price the interaction of supply and demand sets in the market. It has no market power and no ability to set prices. ![]() Some important facts about perfectly competitive firms are: How Perfectly Competitive Firms Make Output DecisionsĪ Perfectly Competitive Firm’s Perceived Demand CurveĪ Perfectly Competitive Firm’s Supply CurveĪ perfectly competitive firm (or a price-taking firm) is a firm that sells its goods or services in a market with perfect competition. Why Are Perfectly Competitive Firms Price Takers? ![]()
0 Comments
Read More
Leave a Reply. |