Answer:
barriers to entry
Explanation:
The characteristics or attributes of the perfectly competitive market are as follows
1. There are large number of buyers and seller who purchase and sales similar kind of products
2. No transaction is involved
3. No barrier for entry and exit into the market
4. It contains the perfectly elastic demand
5. Perfect knowledge about the products
Therefore the first option is considered
Answer:
Quantity demanded of B/percentage change in price of A.
Explanation:
Cross price elasticity of demand is calculated as follows:
= Percentage change in quantity demanded for Good B ÷ Percentage change in price of good A
Cross price elasticity of demand is positive for the substitute goods and negative for the complimentary goods.
For Substitute goods:
It states that there is a positive relationship between the price of a good and the quantity demanded for its substitute goods.
For complimentary goods:
It states that there is an inverse or negative relationship between the price of a good and the quantity demanded for its complimentary goods.
Competitive price taker firms always earn zero economic profit in long-run equilibrium because of the following reasons which include easy entry & exit, small player etc.
Perfect competition exists when there are many sellers, firms can easily enter and exit, products are identical from one seller to the next, and sellers are price takers.
A perfectly competitive firm must accept the equilibrium price at which it sells goods because it is a price taker.
A perfectly competitive firm will be unable to make any sales if it charges even a small amount more than the market price.
Furthermore, a perfectly competitive firm must be a very small player in the overall market, allowing it to increase or decrease output without affecting the overall quantity supplied and price in the market.
Hence, Competitive price taker firms always earn zero economic profit in long-run equilibrium.
Learn more about Long-run equilibrium:
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<span>Choose the best closing for a message requesting the receiver's support for a proposed change in a benefits plan. C</span><span>ontacting me by December 1 about your support of this new benefits plan will allow me to present this proposal at the next strategic planning session. Out of the above options, this option sounds the best and hits all of the necessary points to conclude a request. </span>
Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
