100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
ECS1501 ASSESSMENT 9 SEMESTER 2 2024 (A+ GUARANTEED)In a perfectly competitive market, a) each participant is too small to affect the market price. b) government intervention is needed to ensure that prices are fair for consumers. c) the price can be driv$2.98
Add to cart
ECS1501 ASSESSMENT 9 SEMESTER 2 2024 (A+ GUARANTEED)In a perfectly competitive market, a) each participant is too small to affect the market price. b) government intervention is needed to ensure that prices are fair for consumers. c) the price can be driv
3 views 0 purchase
Course
Economics IA (ECS1501)
Institution
University Of South Africa (Unisa)
ECS1501 ASSESSMENT 9 SEMESTER 2 2024
In a perfectly competitive market,
a) each participant is too small to affect the market price.
b) government intervention is needed to ensure that prices are fair for consumers.
c) the price can be driven upward by suppliers holding back on goods and servic...
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS NOT
PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS ASSIGNMENT IS
INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT,
AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE
THIS WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS
PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY EXISTING
THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE AUTHORS
HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF
THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER GUIDELINE
ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE IN GENERAL,
CONTACT PASSMATE TUTORIALS.
Started on Tuesday, 24 September 2024, 4:42 PM
State Finished
Completed on Tuesday, 24 September 2024, 4:52 PM
Time taken 9 mins 35 secs
Marks 11.00/11.00
Grade 100.00 out of 100.00
Question 1
Complete
Not graded
I confirm
that this assessment will be my own individual work;
that I will not communicate with anyone else in any way during the completion of this assessment;
that I will not cheat in any way in completing and submitting this assessment.
each participant is too small to affect the market price.
government intervention is needed to ensure that prices are fair for consumers.
the price can be driven upward by suppliers holding back on goods and services.
there can be few or many buyers and sellers.
In a perfectly competitive market, there are many buyers and sellers, all of whom are small relative to the size of the market.
This market structure is characterised by several key features:
1. Many Buyers and Sellers: There are numerous buyers and sellers in the market, and no single buyer or seller has the
power to influence the market price. Each buyer and seller is a price taker, meaning they accept the market price as
given and cannot change it.
2. Homogeneous Products: The products or services sold in a perfectly competitive market are homogeneous (meaning
they are identical and indistinguishable from one another).
3. Perfect Information: All buyers and sellers in a perfectly competitive market have access to perfect information. T
4. Free Entry and Exit: There are no barriers to entry or exit in the market.
5. Firms are Price Takers: Each firm in a perfectly competitive market is so small compared to the overall market that its
actions cannot affect the market price. Therefore, each firm accepts the market price as given and adjusts its quantity
of output to maximise profits at that price.
6. Profit Maximisation: Firms in a perfectly competitive market aim to maximise profits.
7. No government intervention: The market answers the questions What? How? and For whom?
Which of the following is not a characteristic of perfect competition in the short run?
All buyers and sellers have perfect knowledge of market conditions.
The equilibrium level of output occurs where marginal cost equals marginal revenue.
All firms are price takers.
All firms produce where average costs are minimised.
In a perfectly competitive market firms are price takers and maximise profits where P = MR = MC.
A perfectly competitive market is characterised by:
1. Many Buyers and Sellers: There are numerous buyers and sellers in the market, and no single buyer or seller has the
power to influence the market price. Each buyer and seller is a price taker, meaning they accept the market price as
given and cannot change it.
2. Homogeneous Products: The products or services sold in a perfectly competitive market are homogeneous (meaning
they are identical and indistinguishable from one another).
3. Perfect Information: All buyers and sellers in a perfectly competitive market have access to perfect information. T
4. Free Entry and Exit: There are no barriers to entry or exit in the market.
5. Firms are Price Takers: Each firm in a perfectly competitive market is so small compared to the overall market that its
actions cannot affect the market price. Therefore, each firm accepts the market price as given and adjusts its quantity
of output to maximise profits at that price.
6. Profit Maximisation: Firms in a perfectly competitive market aim to maximise profits.
7. No government intervention: The market answers the questions What? How? and For whom
In the short run, however, they do not all produce at minimum average costs, but where P = AR =- MC.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller passmatetutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.98. You're not tied to anything after your purchase.
