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.
A unique feature of propane is that it is not produced for its. own sake, but is a by-product of two other processes, natu-. ral gas processing and petroleum reï¬ ning. Figure 1 shows. a diagram of where propane comes from and how it gets to. the consumer. Natural gas plant production of propane primarily involves. extracting materials such as propane and butane from natu-. ral gas to prevent these liquids from condensing and caus-. ing operational problems in natural gas pipelines.