|
|
HOMOGENEOUS PRODUCT: Goods that are either physically identical or at least viewed as identical by buyers. In particular, the producer of a product can not be identified from the product itself. This is a key assumption underlying the perfect competition market structure, and like other assumptions is only approximated in the real world. Agricultural products, metals, and energy goods come as close as any in the real world.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 16: Perfect Competition | Unit 5: Evaluation
|
Page: 28 of 28
|
In this unit, you should have learned about:- The good of perfect competition, including that it efficiently allocations resources by equating price and marginal cost, produces at the lowest possible cost by equating price and average cost, and ensures not be a normal profit.
- The bad of perfect competition, including that it provides no incentives for innovation and growth, is exceedingly due because every good is the same, and can be misused by policy markers if they fail to recognized that it is an idealized model.
- Why perfect competition, with no market control, is a benchmark for evaluating the efficiency of firms (monopoly, monopolistic competition, and oligopoly) that do have market control.
|
|
|
|
|
|
|
FACTOR DEMAND ELASTICITY The elasticity of a factor demand curve is affected by four items: (1) the price elasticity of demand for the good produced, (2) the production function technology and elasticity of marginal physical product, (3) the ease of factor substitutability, and (4) the share of the factor's cost relative to total cost. Changes in any of these four items cause the price elasticity of factor demand to change. In other words, the quantity of factor services demanded becomes more or less sensitive to changes in the factor price.
Complete Entry | Visit the WEB*pedia |
|
|
ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors seeking to buy either a birthday gift for your grandfather or a pleather CD case. Be on the lookout for poorly written technical manuals.
Your Complete Scope
This isn't me! What am I?
|
|
|
The penny is the only coin minted by the U.S. government in which the "face" on the head looks to the right. All others face left.
|
|
|
"The past is a foreign country; they do things differently there." -- Leslie Poles Hartley, Writer
|
|
AFEA
American Farm Economic Association
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
