3 Questions
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?
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?
Firms face challenges such as uncertainty in demand, changing production costs, and the inability to influence market price.
Test your knowledge on the characteristics of a perfect market and how firms achieve equilibrium within it. Explore the challenges faced by firms in reaching equilibrium in a perfect market.
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