![]() So these are just your classicĪnd supply demand curves, supply and demand curves, What quantity to produce and sell and whether toĮnter or exit the market. Is, that's the price that they are going to The market supply and demand curves are gonnaĭefine the price in the market, which are also gonnaĭefine the marginal revenue for these firms. But here we're talkingĪbout perfect competition, and in perfect competition, the firm's products aren't differentiated. Perfectly competitive and at the other extreme, say Most markets are someplace in a spectrum between There's few markets in the real world that are truly perfectly competitive. Perfectly competitive markets are something of a theoretical ideal. ![]() ![]() ![]() Video, we're going to dig a little bit deeper into the notion of perfectly competitive markets, or we're gonna thinkĪbout under what scenarios a firm would make an economic profit or an economic loss in them. ![]()
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