Do you think perfect competition is an ideal market situation.List out its features and explain how the profit maximisation output is reached in the short run?...( 8 marks)
Yes, perfect competitive market is an ideal market situation; though it is a myth and do not exists in real world. The features of Perfect Competition market is covered in our study material at the below mentioned link.
In the short-run, there exists four different profit-earning situations namely, Normal Profits, Supernormal Profits, Normal Loss and Shut-down point. However, the basic short-run profit maximising (or short-run equilibrium) conditions remain the same. That is,
The short-run equilibrium conditions are covered in our study material in detailed supported with videos at the link mentioned below. Refer to them and in case of any problem do get back to us.