market works and some of its characteristics, such as search costs. Would you consider it a perfectly

competitive market?

31. Can you name five examples of perfectly competitive markets? Why or why not?

32. Your company operates in a perfectly competitive market. You have been told that advertising can help
you increase your sales in the short run. Would you create an aggressive advertising campaign for your

product?

33. Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not

simply increase its profits by selling an extremely high quantity?

34. Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would

they do this instead of completely shutting down?

35. Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?

36. Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
{"moddate": "2022-12-07T14:23:05-06:00", "file_name": "Microeconomics3e.pdf", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "producer": "Prince 14.2 (www.princexml.com)", "upload_timestamp": "2026-02-07T15:24:38.309401", "file_size_mb": 26.99, "title": "Principles of Microeconomics 3e", "creator": "PDFMiner", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "batch_upload": true, "uploaded_via": "batch_uploader", "file_type": ".pdf", "total_pages": 597}