A firm in a perfectly competitive market will choose q* such that price is equal to -
MC
Explanation - In a perfectly competitive market, the Marginal revenue is set equal to the average revenue and the price. Hence, the point where the marginal cost curve intersects the marginal revenue curve or the price, the output will be optimal.
A firm in a perfectly competitive market will choose q* such that price is equal to...
A firm in a perfectly competitive market will choose q' such that price is equal to MC AFC O AC AVC Cannot be determined from the information
Afirm in a perfectly competitive market will choose q* in the long run such that price is equal to minimum MC minimum revenue Cannot be determined from the information minimum AFC minimum AVC
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
An individual firm in a perfectly competitive market will face demand. Perfectly inelastic Upward sloping Perfectly elastic Cannot be determined from the information Downward sloping Considering jackets and sweaters, to graph an Engel curve of jackets what must be true? The price of sweaters changes The price of jackets changes Income changes Cannot be determined from the information O Utility is held constant
please include diagrams!! Problem 2. Consider a firm producing in a perfectly competitive market. Represent each of the following situations diagramatically. In each case determine if the firm is producing at the profit maximising level. If it is producing optimally, determine the firm's profit or loss, and in the latter case, if it should shut down. If it isn't producing optimally, should it increase or decrease output? 2, P = $20, Q-12, MC = $20. AC = $22. AVC =...
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
If a perfectly competitive firm is producing 150 units of output at a price of P=$20, where the MC of the 150th unit of output is MC=$20, the ATC of the 150th unit is ATC=$10, and the AVC of the 150th unit is AVC=$8, then which of the following statements is not correct? a. The firm should shut down when the price is less or equal to $8. b. The firm is producing at the profit maximizing level of output....
A firm operating in a Perfectly Competitive Market has costs equal to C(Q) 7Q which of the following is the firm's supply as function of price? b. Q 14P
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...