Podcast
Questions and Answers
What are the characteristics of a perfect market?
What are the characteristics of a perfect market?
Characteristics include perfect competition, homogenous products, free entry and exit, perfect information, and no externalities.
How does a firm reach equilibrium in a perfect market?
How does a firm reach equilibrium in a perfect market?
A firm reaches equilibrium in a perfect market when its marginal cost equals the market price.
What are the challenges faced by firms in achieving equilibrium in a perfect market?
What are the challenges faced by firms in achieving equilibrium in a perfect market?
Firms face challenges such as uncertainty in demand, changing production costs, and the inability to influence market price.
