MYTUTOR SUBJECT ANSWERS

223 views

What characteristics might a perfectly competitive market have? Choose 3 (6 marks)

The first characteristic is that the products are homogenous, meaning there is little difference between the quality of the goods being sold by the individual firms.

The second characteristic is that all the firms are price-takers: they have no ability to affect demand, and as a result demand is perfectly price elastic.

One final feature of a perfectly competitive market is that firms are only capable of making abnormal profit in the short run - this will be eroded over time, through profit signalling, meaning all firms achieve normal profit in the long run.

Salah S. A Level Economics tutor, A Level Further Mathematics  tutor,...

6 months ago

Answered by Salah, who has applied to tutor A Level Economics with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

63 SUBJECT SPECIALISTS

£20 /hr

Alexey B.

Degree: Economics (Bachelors) - Durham University

Subjects offered:Economics, Maths

Economics
Maths

“Top tutor from the renowned Russell university group, ready to help you improve your grades.”

MyTutor guarantee

£20 /hr

Sonam S.

Degree: Economics (Bachelors) - Warwick University

Subjects offered:Economics, Biology+ 1 more

Economics
Biology
-Personal Statements-

“About me: I am an Economics student at the University of Warwick. I have always enjoyed peer tutoring and have previously been part of a study-buddy mentoring scheme in high school, and decided to continue teaching at University. I lov...”

£36 /hr

Adam D.

Degree: Economics and Management (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I am a second year undergraduate student at the University of Bristol, studying Economics and Management. I achieved A* in Economics and Maths A-levels and an A* at maths GCSE so would be very happy to help any students who are studyi...”

About the author

£20 /hr

Salah S.

Degree: Economics (Bachelors) - Warwick University

Subjects offered:Economics, Maths+ 2 more

Economics
Maths
Further Mathematics
-Oxbridge Preparation-

“Hello! I'm Salah, an Economics undergraduate at the University of Warwick. I have a passion for the subject I study, but also loved maths whilst at school and enjoy helping others in any capacity possible. A mentor system at school en...”

MyTutor guarantee

You may also like...

Posts by Salah

f(x) = (4x + 1)/(x - 2). Find f'(x)

The curve C has polar equation 'r = 3a(1 + cos(x)). The tangent to C at point A is parallel to the initial line. Find the co-ordinates of A. 0<x<pi

What characteristics might a perfectly competitive market have? Choose 3 (6 marks)

Other A Level Economics questions

What is cost push inflation?

Comment on whether an increase in the rate of interest would reduce investment.

Is price capping an effective way to deal with monopolistic power?

What factors can shift the supply curve and explain the impact of a change in one of these factors on the supply curve.

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok