![]() ![]() Below is the cost, revenue, and profit data for Elmer's wheat farm, a perfectly Perfectly competitive industry does not have a fixed market price, and the demandĬurve slopes downward reducing it prices, hence attracting more customers.Ģ. Its graph is horizontal and perfectly elastic. ➔ The two demand curves are different as the demand curve for a perfectly competitiveįirm has one set price that it can sell its product/service at, and has a set market Explain why the two demand curves you just drew are either similar or different. Shaped this way because at higher prices consumers want to buy less and at lowerĬ. ➔ The demand curve for a perfectly competitive industry is downward sloping. Graph the demand curve for a perfectly competitive industry and explain why it's shaped the way it is. Therefore, the demand curve forĪ perfectly competitive firm is perfectly elastic.ī. Will go to another firm to get their product/service. (the price at which everyone sells at), they will fail in the market as the consumers ![]() Market price because if the firm tries to make the price higher than the market price It is shaped this wayīecause the price stays the same for each level of output. ➔ The demand curve for a perfectly competitive firm is horizontal. Graph the demand curve for a perfectly competitive firm and explain why it's shaped the way it is. ![]() Demand for a perfectly competitive firm.Ī. AP Microeconomics Assignment: Apply Concepts of Perfect Competitionġ. ![]()
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