Module 8 Assignment

Respond to the question prompt below:

Explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run. Cite an example of a new entrant into a perfectly competitive market by researching the topic online.

Instructions

Respond to the question prompt by submitting your typed response in no more than a one-page double spaced document in 12 pt, Times New Roman. Your  response should be submitted by the deadline. This response will be graded with the writing rubric. (instructional faculty should edit this section to fit the desired expectation)

SLOS

This assignment addresses the following outcomes (and potential outcomes based on responses):

• Course SLO1: Identify the basic economic principles that serve as the foundation of economic analysis
• Course SLO 2: Understand the interaction of supply and demand in determining prices and the role of prices in coordinating economic activity
  
• Course SLO 7: Analyze the performance of firms under different market structures
  
• Module SLO 1: Explain the characteristics of a perfectly competitive market
• Module SLO 2: Discuss how perfectly competitive firms react in the short run and in the long run