Determination of Equilibrium Price and Output Under Perfect Competition
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Where we will draw the AC curve in case of normal profit?Marks:1
In case of normal profit, AC curve will be drawn at the price line.
Where we will draw the AC curve in case of super normal profits?Marks:1
In case of super normal profits, AC curve will be drawn below the price line.
What is perfect competition?Marks:1
Perfect competition is a market situation where there are a large number of buyers and sellers in the market, buying and selling homogeneous commodities.
What is the supply curve of a firm in the short-run under perfect competition?Marks:1
That part of the short-run MC curve which lies above the minimum point of the AVC curve is the supply curve of the firm in the short-run under perfect competition.
Define a Firm and an Industry under perfect competition.Marks:1
Firm refers to unit of an industry whereas an Industry refers to group of firms. Under perfect competition, industry is the price maker and firm is a price taker.