Homework Answers
The given firm is a perfect competition
In perfect competition ,the profit maximising occurs where price and marginal cost intersect
Here the given price is $8 and profit maximisation output is 200 units
The shut down in perfect competition occurs if the equilibrium price is less than the average variable cost
But here the average variable cost is less as compare to price
so in the short run this perfect Competitive firm should operate
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The equilibrium price at which a perfectly competitive firm sells its good is $8. The profit-maximizing...
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stions I through 10. Use the graph for a perfectly e graph for a perfectly competitive firm to answer questions I th...
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The following graph shows the daily cost curves of a firm operating in a perfectly competitive...
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The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
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