B Com Exam > B Com Videos > Business Economics & Finance > Price & Output Determination under Perfect Competition - Product Pricing, Business Economics
Price & Output Determination under Perfect Competition - Product Pricing, Business Economics Video Lecture | Business Economics & Finance - B Com
|
71 videos|80 docs|23 tests
|
FAQs on Price & Output Determination under Perfect Competition - Product Pricing, Business Economics Video Lecture - Business Economics & Finance - B Com
| 1. What is perfect competition and how does it affect product pricing? |  |
Ans. Perfect competition is a market structure where there are many buyers and sellers, and no single participant has control over the market price. In perfect competition, product pricing is determined by the forces of demand and supply. The price is set at the equilibrium point where the quantity demanded by buyers matches the quantity supplied by sellers. As a result, all firms in perfect competition sell their products at the same market price.
| 2. How is price determined under perfect competition? | |
Ans. In perfect competition, price is determined by the intersection of the market demand and supply curves. The market demand curve represents the quantity of a product that buyers are willing to purchase at different price levels, while the market supply curve represents the quantity of the product that sellers are willing to supply at different price levels. The equilibrium price is the price at which the quantity demanded equals the quantity supplied, resulting in a stable market price.
| 3. What factors affect output determination under perfect competition? | |
Ans. Output determination under perfect competition is influenced by several factors. These include the availability of inputs, technology, production costs, and market demand. Firms in perfect competition aim to maximize their profits by producing at the level where marginal cost equals marginal revenue. This occurs at the point where the additional cost of producing one more unit of output is equal to the additional revenue generated by selling that unit.
| 4. How does perfect competition impact the profitability of firms? | |
Ans. In perfect competition, firms have little control over the market price as it is determined by the forces of demand and supply. This lack of pricing power can make it challenging for firms to generate significant profits in the long run. However, firms in perfect competition can still achieve short-term profits if they are able to minimize their production costs and differentiate their products from competitors. Overall, perfect competition tends to limit the profitability of individual firms compared to market structures with more pricing control.
| 5. Can firms in perfect competition engage in price discrimination? | |
Ans. Price discrimination refers to the practice of charging different prices to different customers for essentially the same product or service. In perfect competition, firms generally cannot engage in price discrimination. Since all firms sell their products at the same market price, there is no scope for charging different prices to different customers. Price discrimination requires some level of market power, which is absent in perfect competition where all firms are price takers.
Related Exams
About this Video
|
1.1K Views |
|
4.78/5 Rating |
|
Dec 19, 2024 Last updated |
Video Description: Price & Output Determination under Perfect Competition - Product Pricing, Business Economics for B Com 2024 is part of Business Economics & Finance preparation.
The notes and questions for Price & Output Determination under Perfect Competition - Product Pricing, Business Economics have been prepared according to the B Com exam syllabus.
Information about Price & Output Determination under Perfect Competition - Product Pricing, Business Economics covers all important topics for B Com 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Price & Output Determination under Perfect Competition - Product Pricing, Business Economics.
Introduction of Price & Output Determination under Perfect Competition - Product Pricing, Business Economics in English is available as part of our Business Economics & Finance for B Com & Price & Output Determination under Perfect Competition - Product Pricing, Business Economics in
Hindi for Business Economics & Finance course. Download more important topics related with notes, lectures and mock test series for
B Com Exam by signing up for free.
Description
Video Lecture & Questions for Price & Output Determination under Perfect Competition - Product Pricing, Business Economics Video Lecture | Business Economics & Finance - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Business Economics & Finance.
Information about Price & Output Determination under Perfect Competition - Product Pricing, Business Economics
Here you can find the meaning of Price & Output Determination under Perfect Competition - Product Pricing, Business Economics defined & explained in the simplest way possible.
Besides explaining types of Price & Output Determination under Perfect Competition - Product Pricing, Business Economics theory, EduRev gives you an ample number of questions to practice Price & Output Determination under Perfect Competition - Product Pricing, Business Economics tests,
examples and also practice B Com tests.
|
71 videos|80 docs|23 tests
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
video lectures
,Semester Notes
,study material
,shortcuts and tricks
,Summary
,past year papers
,Exam
,ppt
,Extra Questions
,Previous Year Questions with Solutions
,Sample Paper
,Important questions
,practice quizzes
,Business Economics Video Lecture | Business Economics & Finance - B Com
,Viva Questions
,Price & Output Determination under Perfect Competition - Product Pricing
,Objective type Questions
,MCQs
,Price & Output Determination under Perfect Competition - Product Pricing
,Price & Output Determination under Perfect Competition - Product Pricing
,mock tests for examination
,Free
,Business Economics Video Lecture | Business Economics & Finance - B Com
,Business Economics Video Lecture | Business Economics & Finance - B Com
;
Study Price & Output Determination under Perfect Competition - Product Pricing, Business Economics on the App
Students of B Com can study Price & Output Determination under Perfect Competition - Product Pricing, Business Economics alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Price & Output Determination under Perfect Competition - Product Pricing, Business Economics,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Price & Output Determination under Perfect Competition - Product Pricing, Business Economics is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup