Evaluate the production of goods and services under perfect competition?

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Evaluate the production of goods and services under perfect competition?

2007-03-11 05:01:45 · 2 answers · asked by may c 1 in Social Science ➔ Economics

2 answers

Exactly to market demand at competivie prices.

Supply and Demand make a perfect X on the page.

2007-03-11 19:49:41 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋

It has perfectly elastic average revenue=marginal revenue curve in short run. In the long run it turns out to be less elastic. This is with Quantity on Y axis and Price on X axis. There are so many players in the market. Entry is easy with low investments and low technology.

2007-03-12 14:05:00 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋