MYTUTOR SUBJECT ANSWERS

139 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,...

3 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

44 SUBJECT SPECIALISTS

£20 /hr

Grace D.

Degree: Economics (Bachelors) - Newcastle University

Subjects offered: Economics, Maths+ 2 more

Economics
Maths
Geography
English

“About me:I am currently in my second year of an Economics degree at Newcastle Univeristy. I am very passionate about my subject and am a leading member of the Economics Society there, in addition to competing in various Business and ...”

£22 /hr

David L.

Degree: Economics (Bachelors) - LSE University

Subjects offered: Economics, Music+ 4 more

Economics
Music
Maths
Extended Project Qualification
English
-Personal Statements-

“I am a currently a student studying BSc Economics at the London School of Economics. I have had an exemplar academic record, achieving two A*s and three As at A-Level in Maths, Further Maths, Economics, Music and EPQ; and the equivale...”

£20 /hr

James B.

Degree: Mathematics and Economics (Bachelors) - Nottingham University

Subjects offered: Economics, Maths

Economics
Maths

“About me : I am currently studying Maths and Economics at Nottingham University, about to go into my second year. Over the summer I have been in America teaching and counselling kids at a summer camp and I hope to bring what I have le...”

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

How can the division of labour affect productivity?

What are the effects on UK businesses after an increase in fuel prices?

List and explain some ways in which a monopolistic firm can use it's lower costs as a barrier to entry.

How should I approach a data-response question?

View A Level Economics tutors

Cookies:

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

mtw:mercury1:status:ok