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
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.




............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
Matz Uzry 7th edition of...
Last post by Aamna Ashiq
14 Hours Ago 08:47 PM
0 Replies
Solution of Matz Uzry...
Last post by Aamna Ashiq
14 Hours Ago 08:42 PM
0 Replies
need an answer...
Last post by Alifia Puspita
16 Hours Ago 07:20 PM
0 Replies
New Classic iPhone 6!
Last post by Vinod Gupta
17 Hours Ago 06:07 PM
0 Replies
HTC Launched Budget...
Last post by Vinod Gupta
17 Hours Ago 06:02 PM
0 Replies
Man City FC Won!
Last post by Vinod Gupta
17 Hours Ago 05:57 PM
0 Replies
Canvas Doodle 3 for Rs:...
Last post by Vinod Gupta
17 Hours Ago 05:51 PM
0 Replies
Google's Animated Earth...
Last post by Vinod Gupta
17 Hours Ago 05:45 PM
0 Replies
Daily Ncdex Trading Tips...
Last post by Riya Bajaj
18 Hours Ago 04:40 PM
1 Replies
National Institute of...
Last post by Murgha Joshi
22 Hours Ago 12:48 PM
0 Replies
National Institute of...
Last post by Murgha Joshi
22 Hours Ago 12:37 PM
0 Replies
Mumbai Educational Trust...
Last post by Murgha Joshi
22 Hours Ago 12:29 PM
0 Replies
ERA Business School:...
Last post by Murgha Joshi
23 Hours Ago 12:16 PM
0 Replies
Test bank on Business...
Last post by Bhautik Kawa
23 Hours Ago 11:56 AM
2 Replies
Pepsi IPL 7, KXIP vs...
Last post by Yashwant Naik
1 Day Ago 11:15 PM
0 Replies
» Projects Helpline
Project on CRM (...
Last post by Vish Kumar
1 Week Ago 06:12 PM
100 Marks Project on...
by msdhoni
Last post by Bhautik Kawa
1 Week Ago 11:55 AM
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