Note: The trick to identifying a perfectly competitive resource market if there is a chart instead of a graph is that there will only be one wage. The graphs above show a decrease in the supply of labor. That causes the wage to increase, and with that the firm’s MRC (Supply) shifts...
Are Markets Perfectly Competitive in the Long Run? Market Power, Factor Utilization and Adjustment Costs in US ManufacturingImperfect CompetitionFactor UtilizationAdjustment CostsProductivityStochastic FrontiersSome firms outperform others. This paper presents a methodology that uses publicly available data to ...
The unit elastic theory assumes that there's another similar good on the market at a competitive price. Example:An office supply store sells a specific type of pen for $1.41. It sells 1,000 of these pens per month, making a profit of $1,410. The owner believes the store could sell m...