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.
Natural gas is a fossil fuel, like oil and coal. It's formed from decayed organic material transformed by high temperatures and pressures over millions of years into bubbles of methane gas.Conventional sources are found in underground gas fields or oil fields.atural gas burns cleaner than other fossil fuels, producing half the carbon dioxide as coal and about a third less than oil. It also emits fewer amounts of toxic chemicals like nitrogen oxides and sulfur dioxide.