Question

The demand curve facing a perfectly competitive firm is Select one: a. the same as its average revenue curve, but not the same as its marginal revenue curve. b. the same as its average revenue curve and its marginal revenue curve. c. the same as its marginal revenue curve, but not its average revenue curve. d. not the same as either its marginal revenue curve or its average revenue curve. e. not defined in terms of average or marginal revenue.

Answer 1

Cost MU P-AR MR Qutput Pesfect oropetition paite Revenue (AR) y0s In bveaoge al ase equdl ond orstant Because fim is a paice devenue (MR) Mongind and Jebe talkes and at unit wll have Some Poi ce So Poice Demand Ge of the fsm is AR Cuve }Hede is fized at P' AR P ond is 4Ho or tol quilibu is where Morainal st Mc) ds tic MRefR-P is the equlibaius in perfect Competition. us Duiput is debeorsned 2rce at tege enlt 2 Ans b) the same as it AR Gove and its MR Cuve aseto g