SOLVED: In a perfectly competitive market, a firm faces a perfectly elastic demand because there is unrestricted entry and exit. If a firm raises its price, it will lose some, but not all, of its customers. When a firm sells another unit of output, the addition to total revenue is equal to the market price. All of the above.

Perfectly Competitive Market | Overview & Characteristics

SOLVED: A perfectly competitive market has 1,000 firms. In the very short run, each of the firms has a fixed supply of 100 units. The market demand is given by Q=160,000-10,000 P a Calculate the equilibrium price in the very short run. b. Calculate the demand schedule facing any one firm in this industry. c. Calculate what the equilibrium price would be if one of the sellers decided to sell noth ing or if one seller decided to sell 200 units. d. At the original equilibrium point, calculate t