Asked by Ailis Galdo on May 25, 2024
Verified
Is the firm a perfect competitor or an imperfect competitor? Explain your answer in one sentence.
Perfect Competitor
A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.
Imperfect Competitor
A market participant that cannot dictate the market prices but can influence them through its product or service differentiation.
- Assess the situations that lead to a firm being categorized as a perfect or imperfect competitor in the labor market.
Verified Answer
BE
brandy escobedoMay 28, 2024
Final Answer :
An imperfect competitor has to lower price to sell additional output.
Learning Objectives
- Assess the situations that lead to a firm being categorized as a perfect or imperfect competitor in the labor market.