Perfect Competition and Long-run Equilibrium Term Paper

Perfect Competition and Long-run Equilibrium - Term Paper ExampleBasically, in a market of perfect ambition does not give monopoly to a wiz company. A single firm or company does not rule over the whole market as many a(prenominal) firms atomic number 18 producing the same products. Thus one single firm is not able to determine the prices of products. A market with perfect competition would have many suppliers, producers and consumers because of the different firms involved in such a market. The perfect competition involves many sellers or firms and thus it cannot be found to be very viridity in this world. In perfect competition it is not difficult for the new firms to enter, thus it is seen that many sellers are involved in this type of competition. The reason for this is that the firms do not have to have a long capital to enter this competition and they can seek help from many individuals when entering in this sector. moreover not only is it user-friendly to enter the perf ectly competitive market but also it is easy to exit such a market. The transactions which are made in this type of competition do not cost anything to the buyers or sellers. In such a type of competition, it is aimed that the firms maximize their profits by selling their products where the marginal costs and marginal revenue are in equilibrium. The most important trace of such a competition is that the products which are being sold are usually manufactured by many companies thus strong competition is felt in this type of competition. An example of perfect competition is a group of fruit vendors who are selling the same fruits.