BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1
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2-5
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Many
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None of the above
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Detailed explanation-1: -In fact, the major result of the general equilibrium analysis is the fol-lowing: under certain conditions, a general equilibrium with two or more noncolluding firms per industry is perfectly competitive.
Detailed explanation-2: -Perfect competition is a market structure where many firms offer a homogeneous product. Because there is freedom of entry and exit and perfect information, firms will make normal profits and prices will be kept low by competitive pressures.
Detailed explanation-3: -Firms are said to be in perfect competition when the following conditions occur: Many firms produce identical products. Many buyers are available to buy the product, and many sellers are available to sell the product.
Detailed explanation-4: -Perfect competition has 5 key characteristics: Many Competing Firms. Similar Products Sold. Equal Market Share.