Answer to Question #99329 in Microeconomics for Sofia

Question

Suppose the market of carpets is competitive. A typical firm producing carpets has the following total cost function.

Answer 1

A competitive market is when there are many producers competing to provide consumers with the goods and services needed. In a competitive market, no single producer or consumer can dictate the market. All competitive markets share five characteristics: profit, diminishability, rivalry, excludability, and rejectability.