Characteristics of pure competition

For the Pure Competition Market Structure1

a. List and explain each of the characteristics of pure competition and why we study that market structure.

b. List and explain the 3 decision process questions confronting the producer in pure competition.

i. Please refer to the slide that discusses the 3 decision process questions under the total revenue total cost approach and listen to the audio to prepare your answer.

c. From the point of view of the business manager, explain the Total Revenue Total Cost approach to determining the profit maximizing level of output for the purely competitive firm, and how that info can help a business manager.

i.Please refer to the Total Revenue Total Cost Approach slide and the audio to prepare your answer.