4

1. How do externalities impact the equilibrium in perfect competition?

2. How do network effects influence the dynamics of perfect competition?

3. How does price behave in a perfectly competitive market in the long run?

4. In perfect competition, what happens to economic profit in the long run?

5. What effect does external shocks have on the stability of perfect competition?

6. What is the role of economies of scale in the context of perfect competition?

7. What role does product differentiation play in a perfectly competitive market?

8. Why do firms in a perfectly competitive market earn zero economic profit in the long run?

9. What role does innovation play in a perfectly competitive market?

10. How does the mobility of buyers and sellers impact the dynamics of perfect competition?

11. What impact do economies of scale have on firms in perfect competition?

12. How does a perfectly competitive firm maximize profit in the long run?

13. How does consumer loyalty impact the stability of perfect competition?

14. What condition characterizes the long-run equilibrium for a perfectly competitive firm?

15. How does the ease of entry and exit of firms impact the long-term sustainability of perfect competition?

16. What is the impact of a perfectly elastic demand curve on a firm's revenue?

17. What role does asymmetric information play in perfect competition?

18. What role do the expectations of future market conditions play in decision-making by firms in perfect competition?

19. How does a high degree of market information transparency impact perfect competition?

20. How does the existence of perfect competition contribute to allocative efficiency?