posted by .

Do all firms in all market structures have anything in common?

I think not.

They all consist of buyers and sellers.

In Principals of Microeconomics courses, economists make several general economic assumptions (perhaps incorrectly I might add) about firms and the behavior of firms. For example, we generally assume that:
1) All firms are profit maximizers.
2) All firms make rational choices.
3) Consumers make rational choices.
4) The marginal product of inputs is almost always decreasing.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    What is the difference between a buyer's market and a seller's market?
  2. Economics

    what it meant by equilibrium in economics?
  3. Microeconomics

    Indicate how you think each of the following would shift demand in the indicated market: a.Incomes of buyers in the market for Adirondack vacations increase. b.Buyers in the market for pizza read a study linking hamburgers consumptions …
  4. Economics

    A tax imposed on a market with an inelastic demand and an elastic supply with cause: A)sellers to pay the majority of the tax B)buyers to pay the majority of the tax C)the tax burden to be equally devided between buyers and sellers …
  5. Managerial Economics

    I need help with these questions 1. The structure of the market in which JetBlue operates (i.e. how competitive is it--monopolistic, oligopolistic, competitive, monopolistically competitive)?
  6. economics

    im learning about economics and the meaning of 3 economic systems traditional, command, market traditional i undestand as peooples ecomonic passed down from previoius generations, traditions decide what theses people do for a living …
  7. Managerial Economics

    When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses. Contrast this to the real world and why individual firms …
  8. Government

    A market in which buyers and sellers are free to buy and sell as they wish is known as a A. global market. B. common market. C. free market. D. world market. is it A.
  9. principles of economics

    four companies produce virtually all breakfast cereal. how might this concentation of market power affect market outcomes?
  10. Econ Online

    market competition pushed a price down toward its market-clearing level. Which of the following BEST describes they type of competition that would cause lower prices 1) Competition between buyers and sellers 2) Competition among sellers …

More Similar Questions