A) explain the term \"Market Structure\" B Develop an analysis/model of perfect

Question

A) explain the term "Market Structure"

B Develop an analysis/model of perfect competition.

1) What are the conditions of perfect competition?

2) in the short rum, what is the industry result?

3) develop a model demonstrating the result for one producer in the short run.

4) what is the goal of the producer in the short run? how does he achieve this Goal?( what is " the rule"?)

?

C) show & explain adjustments to the short run. what typically becomes the steady state equllibrium for any one producer

D) what is the long rum in perfect competition? what is the typical result?

E) why is this market structure considered to be efficient ?

Explanation / Answer

B1: Four characteristics or conditions must be present for a perfectly competitive market structure to exist. First, there must be many firms in the market, none of which is large in terms of its sales. Second, firms should be able to enter and exit the market easily. Third, each firm in the market produces and sells a nondifferentiated or homogeneous product. Fourth, all firms and consumers in the market have complete information about prices, product quality, and production techniques.

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