Differences between Perfect Competition and Contestable Markets
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Differences between Perfect Competition and Contestable Markets
In this revision video we look at the key differences between perfect competition and a perfectly contestable market. Students often confuse the two so it is important to clarify this before entering an exam.
2019年5月18日
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SOLVED:Consider the following graph. a. Is it possible to say whether this firm is a perfectly competitive firm or a monopolistically competitive firm? If so, explain how you are able to make this determination. b. Does the graph show a short-run equilibrium or a long-run equilibrium? Briefly explain. c. What quantity on the graph represents long-run equilibrium if the firm is perfectly competitive?
SOLVED:Consider the following graph. a. Is it possible to say whether this firm is a perfectly competitive firm or a monopolistically competitive firm? If so, explain how you are able to make this determination. b. Does the graph show a short-run equilibrium or a long-run equilibrium? Briefly explain. c. What quantity on the graph represents long-run equilibrium if the firm is perfectly competitive?
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SOLVED:Consider the following graph. a. Is it possible to say whether this firm is a perfectly competitive firm or a monopolistically competitive firm? If so, explain how you are able to make this determination. b. Does the graph show a short-run equilibrium or a long-run equilibrium? Briefly explain. c. What quantity on the graph represents long-run equilibrium if the firm is perfectly competitive?
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