Explain why perfectly competitive firms cannot make supernormal Essay - 1

Explain why perfectly competitive firms cannot make supernormal profits in the long run but monopolies can - Essay ExampleProducers are only interested of taking their cost and resources are easily mobilized. Thus it makes a perfect combination.The most interesting part is that ideal Competitive foodstuff has growth levels to improve their quality and revise their prices which make them vulnerable and devoted towards their yield. This is find and practice because a lot of firms comes in and introduce their new may be advanced product to customers and if you fail to offer something equivalent then customers simply turns their backs. These are some positive gestures which you receive from the market to improve further or bring something new to attract the customers. All conditions are to be effectuate to make it a Perfect Competitive Market.Monopolistic Market It is a place where only bingle party holds the system and moulds it accordingly. There are several other problems that occur for consumers if the market is monopolistic worry supply constraints are faced often and prices are fixed according to their will, mostly high and exuberant barriers are being laid for new comers which is a hindrance in getting new offers and sufferers are only customers as they cant help buying the product available. This type of markets are unremarkably said to be in telecommunication or media industry sectors as they lay strong al-Qaida by investing a huge amount which cannot be easily challenged. But they are worst for themselves in a way that they do not face competitor, which does not make them realize to go for innovations or advancements. The best example here is American Software Company known as Microsoft which rule the software sector for decades because of its Windows Operating System. They were later challenged by Apple with extra ordinary efforts for which Apple waited for old age and today it is in dominance. Remember efficiency is not the only factor af fecting monopoly. Monopolies can dumb achieve a good profit ratio then Competitive markets in the long run.This call can