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 an energy source often used for heating, cooking, and electricity generation. It is also used as fuel for vehicles and as a chemical feedstock in the manufacture of plastics and other commercially important organic chemicals.hen gas is associated with petroleum production it may considered a byproduct and be burnt as flare gas. The World Bank estimates that over 150 billion cubic metres of natural gas are flared or vented annually.