Question
. The phrase Many Firms is used in the definition of Pure Competition. This seems odd in economics. Economic terms are usually precisely defined. What
. The phrase "Many Firms" is used in the definition of Pure Competition. This seems odd in economics. Economic terms are usually precisely defined. What exactly does "Many Firms" mean in the definition of Pure Competition?
B. Following part A above, what exactly does the phrase "Several Firms" mean in the definition of monopolistic competition?
C. The neo-classical production model is the all-encompassing name of the models describing firms. It is beautiful and mathematically elegant.But, some criticize it because of how it treats the entrepreneur. Explain briefly this criticism.
D. The Total Revenue function is on Tests 1 and 2. But it has two very different shapes. It may rise, max out, and fall back to zero, or it may be a linear ray rising out from the origin. It seems impossible that the same function could have such different shapes.Explain why this happens when describing pure competition, monopoly, and monopolistically competition.
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