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Title: Perfect Competition -Question Booklet
Description: Booklet of questions covering every point on Perfect Competition required for the A2 Economics Specification
Description: Booklet of questions covering every point on Perfect Competition required for the A2 Economics Specification
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Perfect Competition
What is meant by Perfect Competition?
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What are the assumptions of the perfect competition?
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Draw a diagram to show the short run equilibrium situation for a firm operating under perfect
competition
Why is this the short run equilibrium situation?
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Why might a firm under perfect competition make abnormal profit in the short run?
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Draw a diagram to show the short run equilibrium situation for a firm operating under perfect
competition
Explain why firms operating under perfect competition cannot make abnormal profit in the long run
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Explain why this is the long run equilibrium
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Why does demand = average revenue= marginal revenue for firms under perfect competition?
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Draw two diagrams to show the long run situation for both the firm and industry operating under
perfect competition
Why is the demand curve for the industry normal but that for the firm is elastic?
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Why is the marginal cost curve the supply curve under perfect competition?
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What are the advantages of firms operating under perfect competition?
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What are the disadvantages of the theory of perfect competition?
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Has the theory of perfect competition become more realistic over time?
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Explain with the aid of a diagram, what is meant by saying that the long run equilibrium for perfect
competition is allocatively and productively efficient?
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Title: Perfect Competition -Question Booklet
Description: Booklet of questions covering every point on Perfect Competition required for the A2 Economics Specification
Description: Booklet of questions covering every point on Perfect Competition required for the A2 Economics Specification