low are eight descriptions of firms operating under various market conditions. F
ID: 1119643 • Letter: L
Question
low are eight descriptions of firms operating under various market conditions. For each item, determine whether the market is a nopoly or a market with perfect competition. ems (8 items) (Drag and drop into the appropriate area below) A firm in this market has no market power A firm in this market cannot earn long-run economic profits A firm in this market produces where P> MC A firm in this market has significant market power A firm in this A firm in thi A firm in this market is one of many small market may earn market prod long-run where P- M economic profits Categories ition Drae and droo here VIEW SOLUTION 7 OF14 MacBook AirExplanation / Answer
Descriptions which belong to perfect competition market:
1. A firm in this market has no market power.
2. A firm can not earn long run profits in this market structure.
3. A firm in this market is one of many small competitors.
4. Firm in this market produces at P = MC
Monopoly:
1. A firm in this market produces at P>MC
2. A firm in this market has significant market power.
3. A firm may earn long run economic profits
4. A firm has no market competitors in this market
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