In a Perfectly Competitive Market with Identical Firms, All Surplus

question 9

True/False

In a perfectly competitive market with identical firms, all surplus will be consumer surplus in long run equilibrium.

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Definitions:

Compete

The act or process of trying to win or do better than others in an activity, market, or situation.

Cooperate

To work together towards a common goal or purpose, often seen in various social, political, and economic contexts.

Cartels

are agreements between competing firms in the same industry to control prices, limit production, or divide markets, in order to increase profits by reducing competition.

Homogeneous Product

A homogeneous product is one that is perceived by consumers as identical in quality and function to a product from another producer.