Question
Please respnd to the post below: Perfectly competitive markets consist of a large amount of buyers and sellers. Although there isn't any power to control
Please respnd to the post below:
Perfectly competitive markets consist of a large amount of buyers and sellers. Although there isn't any power to control price, sellers can choose how much output they choose to maximize profit. They do this by selecting where marginal revenue equals marginal cost. I'd say in the short run there is major competition since sellers have the most opportunity to make profits. When there is a lot of sellers in the market this would cause a shift in the supply curve to the right which would in turn would cause sellers to exit out of the market until the shift goes back to the left. In the long run profit is always equal to zero which is where there wouldn't be any competition. I would partially agree with the fact there is no competition between firms in the long run and that in the short run that's where the competition is.
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