ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Managerial Economics

Merits of Perfect Competition - Part 2

Merits of Perfect Competition - Part 2

Discuss Merits of Perfect Competition - Part 2 within the Managerial Economics forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; 3. Shut-down Point: It is of utmost importance to decide whether one should continue business or not when the firm ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
Merits of Perfect Competition - Part 2
Old
 (1 (permalink))
Savio Cabral
savio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of light
 
savio13
Student of Arts & Law
Mumbai, Maharashtra
Status: Offline
Posts: 1,390
Join Date: May 2009
Location: Mumbai, Maharashtra
Post Merits of Perfect Competition - Part 2 - May 27th, 2009

3. Shut-down Point: It is of utmost importance to decide whether one should continue business or not when the firm is not in a position to cover the cost.
To explain this problem a distinction is made between variable cost and fixed cost. Variable cost is avoidable cost by not producing the goods and services. Fixed cost is unavoidable since it has to be borne in the short-run even if the plant remains closed. A firm has to cover what is avoidable otherwise there is no reason why the entrepreneur should suffer the loss. The principle derived here is that for a firm to operate in the short-run its total revenue(TR) must be equal to its variable cost (TVC) if not, the firm should close down. The shut down point is the one below which the firm would not operate and would start functioning at that point. In the long-run it must be noted that all costs are variable, therefore a firm must cover all the cost and earn normal profit.

4. No Entry Barriers: Perfect competition is a highly efficient form of market. To ensure efficiency through competition , anyone who wishes to carry on the business must be allowed to do so. Similarly one who feels that he cannot compete and therefore wants to quit must have the freedom to exit.
Advertisements




............SAVIO
Friends: (3)
Reply With Quote

Reply

Bookmarks

Tags
competition, merits, part, perfect

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

Solution manual of... ( 1 2 3)
3 Hours Ago 09:30 PM
20 Replies
Short Term Technical... ( 1 2 3... Last Page)
Last post by Windsor Brokers
6 Hours Ago 06:19 PM
65 Replies
Asian Markets Update by...
Last post by Epic Research
10 Hours Ago 02:47 PM
3 Replies
Indian Rupee Update by...
Last post by Epic Research
10 Hours Ago 02:44 PM
2 Replies
SSC vs CBSE vs ICSE vs...
Last post by Joel Francis
10 Hours Ago 02:37 PM
0 Replies
Why is Market Research...
Last post by Maria Reese
13 Hours Ago 11:26 AM
2 Replies
Soultion manual on... ( 1 2 3... Last Page)
Last post by Jolly Ehiabhi
16 Hours Ago 08:17 AM
63 Replies
Solutions Manuals,... ( 1 2)
Last post by Wafa'a Tarawneh
1 Day Ago 10:32 PM
15 Replies
BMS notes for mp : all... ( 1 2 3... Last Page)
Last post by Kartik Raichura
1 Day Ago 09:27 PM
256 Replies
CFA Level 1, Level 2 and...
Last post by Joel Francis
1 Day Ago 12:09 PM
5 Replies
project on privatisation ( 1 2)
Last post by Shatrughna Bhoir
2 Days Ago 08:05 PM
16 Replies
Chak De India - An... ( 1 2 3)
Last post by Deepika Dasani
2 Days Ago 01:06 PM
25 Replies
Solution manual on... ( 1 2)
Last post by Katherine Teng
3 Days Ago 05:27 PM
14 Replies
Mba all semester...
Last post by Pritesh Meshram
3 Days Ago 04:23 PM
3 Replies
Solutions manual on... ( 1 2)
3 Days Ago 04:10 PM
16 Replies

» Projects Helpline

project on privatisation
Last post by Shatrughna Bhoir
2 Days Ago 08:05 PM
topics related to 100...
Last post by Rachini Pandey
4 Days Ago 10:35 PM
Retail Management Notes
Last post by Rajesh Nimbunkar
5 Days Ago 05:12 PM
Final Year MBA Projects...
by Raasi
Last post by Raj Raj
1 Week Ago 03:23 PM
Project Management...
by onjono
Last post by Raj Raj
1 Week Ago 03:13 PM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in