Show with some simple numbers why marginal revenue equals demand for the perfectly competitive firm.
Show with some simple numbers why marginal revenue equals demand for the perfectly competitive firm.
Homework Answers
The firm in the perfectly competitive market have a horizontal curve, that means a firm in the firms can sell as many goods as they can at a given price.
For example the price of the good is $10 at that price the firm is selling 10 goods, marginal revenue is the additional revenue that the firm get by selling at the given price. the price in the market will not change as the firm is a price getter and the demand and supply set the price. here, if the firm sells 11th good that will also be at the price of 10 so the marginal revenue will be equal to 10.
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Show with some simple numbers why marginal revenue equals demand
for the perfectly competitive firm.
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Why are marginal revenue and price equal for a firm operating in a perfectly competitive market?
Why are marginal revenue and price equal for a firm operating in a perfectly competitive market?
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output...
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output levels price exceeds marginal revenue at all output levels price is less than marginal revenue only at the profit-maximizing quantity price equals marginal revenue only at the profit-maximizing quantity price equals marginal revenue at all output levels
1. What type of demand curve does a perfectly competitive firm face? Why? 2. A perfectly...
1. What type of demand curve does a perfectly competitive firm face? Why? 2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $150. Output FC VC TC TR Profit/Loss 0 $100 $ 0 ___ ___ ___ 1 100 100 ___ ___ ___ 2 100 180 ___ ___ ___ 3 100 ...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal?...
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal? price? B) Want to lower your price? Explain why or why not. change when market price changes? Explain. 3. A. B.Explain which of the four characteristics is primarily responsible for the fact that the C. If you owned a firm in a perfectly competitive market would you: A) Want to raise your D.Draw the demand curve for a firm under perfect competition. Would the...
Microeconomic question perfectly competitive firm is The following figure shows the marginal cost, average total cost,...
Microeconomic question
perfectly competitive firm is The following figure shows the marginal cost, average total cost, demand, marginal revenue curves for a firm in monopolistic competition. Assume that the cost curves of a perfectly competitive firm are identical to the cost curves of this monopolistically competitive firm shown here. The average revenue for the perfectly competitive firm is $6. of AA л Figure 10.1 Marginal Cost Average Total Cost Dollars per unit mm Demand 10 Marginal Revenue 20 30 40...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
What explains the horizontal demand curve for a Firm in a perfectly competitive market? How does...
What explains the horizontal demand curve for a Firm in a perfectly competitive market? How does this differ from the Market demand curve in a perfectly competitive market? Explain the behavior of marginal revenue in a Market compared to a Firm.
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal...
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal revenue curve, the monopolist's demand curve_ MR. The perfectly competitive firm's demand its marginal revenue curve. - Flag Select one: O a. less than greater than, lies below, lies above b. cquals; is greater than; is; lies above O c.equals, is less than is; lies below o d greater than, equals; lies above is Previous page Next page MacBook Air o...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output levels price exceeds marginal revenue at all output levels price is less than marginal revenue only at the profit-maximizing quantity price equals marginal revenue only at the profit-maximizing quantity price equals marginal revenue at all output levels
Discuss the four characteristics of perfect competition demand curve of a perfectly competitive firm is horizontal? price? B) Want to lower your price? Explain why or why not. change when market price changes? Explain. 3. A. B.Explain which of the four characteristics is primarily responsible for the fact that the C. If you owned a firm in a perfectly competitive market would you: A) Want to raise your D.Draw the demand curve for a firm under perfect competition. Would the...
Microeconomic question
perfectly competitive firm is The following figure shows the marginal cost, average total cost, demand, marginal revenue curves for a firm in monopolistic competition. Assume that the cost curves of a perfectly competitive firm are identical to the cost curves of this monopolistically competitive firm shown here. The average revenue for the perfectly competitive firm is $6. of AA л Figure 10.1 Marginal Cost Average Total Cost Dollars per unit mm Demand 10 Marginal Revenue 20 30 40...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal revenue curve, the monopolist's demand curve_ MR. The perfectly competitive firm's demand its marginal revenue curve. - Flag Select one: O a. less than greater than, lies below, lies above b. cquals; is greater than; is; lies above O c.equals, is less than is; lies below o d greater than, equals; lies above is Previous page Next page MacBook Air o...
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