What is meant by perfect competition? State the profit maximization condition of both perfect competition and monopoly.
For unlimited access to Homework Help, a Homework+ subscription is required.
What do monopolistic competition, pure monopoly, and perfect competition have in common?
the rule of profit maximization
long-run economic profits
free entry
differentiated product
price taking
Under both perfect competition and monopoly:
a. there is a large number of sellers
b. there are no barriers to entry of new firms
c. there is product differentiation
d. seller aims for profit maximization
Ā
In which of the following market structures can firms be price makers?