The demand curves for competitive firms, however, are almost perfectly elastic because no matter how these firms change their production, in a perfectly competitive economy, there are so many firms out there that its production will not affect anything.onopolistic competition, because there are so many relatively weak firms, there are no barriers to entry. Companies can enter the market relatively easily (although, of course, not as perfectly easy as in perfect competition). This makes for a long-term equilibrium competition of no profit.
How Is Natural Gas Produced. Natural gas is found in oil fields, natural-gas fields and coal beds. Since natural gas isn't a pure product, it needs to undergo processing before it can be used as consumer fuel. The gas is extracted from a field using a decompression process called retrograde condensation.
Propane, which powers many kitchen stoves and outdoor grills as well as home heating systems, is derived from natural gas. Natural gas is also used to generate 21% of our electricity. (See Our Energy System for an overview of how natural gas is used in the United States.).Natural gas is often described as âclean burningâ because it produces fewer undesirable by-products than gasoline.Like all fossil fuels, its combustion emits carbon dioxide, but at about half the rate of coal.atural gas provides 24% of our energy. Unlike oil, almost two-thirds of which is imported from foreign sources, our natural gas comes primarily from North America. The annual volume of consumption is projected to rise from 22.5 trillion cubic feet (tcf) in 2009 to about 23.5 tcf in 2030.