Which One of the Following Is the Best Example of Perfect

question 117

Short Answer

Which one of the following is the best example of perfect competition?
Agricultural industry
Automobile industry
Utility industry
Clothing industry
Soft drink industry

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Definitions:

Economic Profit

The difference between a firm's total revenues and its opportunity costs, representing the additional gain over what could have been earned in the next best alternative.

Normal Profit

The minimum level of earnings needed for a company to remain in business, often considered as the company's opportunity cost.

Break Even

The juncture where the aggregate of all costs matches the total income, leading to neither a profit nor a loss.

Short Run

A period of time during which at least one of a firm's inputs is fixed.