Id 0302 Name: Nabiev Uktam Chapter 14 What is the definition of perfectly competitive market?

Tourism Economics
Individual assignment
Group: Plan 119
ID 0302
Name: Nabiev Uktam
Chapter 14
What is the definition of perfectly competitive market?
In a competitive market, the market mechanisms imply the relationship between suppliers and consumers, thereby determining the price of goods and services. More specifically, in a competitive market, there is a great number of suppliers and consumers, the products available to consumers are homogenous, and there are low barriers to entry.
What is the relation between total revenue and marginal revenue?
Although the income includes cash, it can be an exceptionally profitable figure on the shop front. Many other essential and ancillary activities of the shopping centre are directly or indirectly dependent on income. The two most important types of income are total income and marginal income. Revenue is the total value of the entire firm's transaction. It is calculated taking into account the cost of each item and the quantity of the item. Negligible income is the change in total income compared to the change within the amount of the item. The minimum income is directly related to the total income. Assume that all alter income is high, the minimum income is increased. The marginal revenue is directly proportional to total revenue change.
Produce the quantity of output that will maximize total revenue minus total costs.
- Compare marginal revenue with marginal cost.
- If MR > MC: increase production.
- If MR < MC: reduce production.
In the short term they will turn off if PIn the short run, this is the part of the marginal cost curve that lies above average variable cost. In the long run, the marginal cost curve is above average total cost.
Chapter 15
Why do monopolies arise?
First, the size of the market or the nature of production may be such that it does not allow for the creation of more than one firm in an industry. In particular, economies of scale are so important that only one firm can produce all output. If that particular firm is able to produce goods at a lower average cost than two or more firms, the market creates a natural monopoly.
Second, control or ownership of critical raw materials or knowledge of low-cost production methods can help maintain a monopoly business. Such control over resources often discourages other firms from starting new businesses, thereby excluding competition. Or it may exhibit lower marginal cost over a wide range of output levels, due to the possession of unique resources or unique managerial talent.