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What are the characteristics of perfect competition?

Homogeneous goods, Firms are price takers, An infinite number of suppliers and producers, Firms are profit maximisers, There are no barriers to entry, Producers have perfect information
IA
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Discuss the perfect competition model?

many buyers and sellershomogenous goodsno barriers to entry and exitperfect knowledge No sunk costsunrealisticno place for monopolies/oligopolies
PS
Answered by Perdita S. • Economics tutor
1994 Views

To what extent can financial regulation correct financial market failure?

One type of regulation that could be used to correct financial market failure would be to impose a cash or liquidity ratio for commercial banks, to solve the issue of excessive and risky bank lending. A cash...
Answered by • Economics tutor
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What is a Production Possibility Frontier?

A PPF is a graph that can be used to explain opportunity cost , and trade off. It is made up of a concave line with, for example, apples on the vertical axis and bananas on the horizontal axis. Since resourc...
MC
Answered by Maisie C. • Economics tutor
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[Edexcel Economics A 2015] With reference to the information provided, examine two pricing strategies an oligopolist like Sony may use to maximise profits (8).

As an oligopoly is when a group of firms have the majority of the market share, they gain price-setting power. One policy they can use is limit-pricing. In lowering the price of their goods, oligopolies are ...
CK
Answered by Conrad K. • Economics tutor
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