6. For the Pure Competition Market Structure 2 a)List and explain the three characteristics of the MR-MC approach to determining the profit-maximizing output and price for the purely competitive firm. b) From the point of view of the business manager of a purely competitive firm in the short run, please explain the steps involved in determining the firms: Use the MR MC approach along with the appropriate cost curves to create your answer. C) For each of the 3 cases (profit maximization, loss minimization, and shut down) explain what would happen to economic profit if your federal government imposed a tariff on the importing of several of your key inputs, and why you would expect that result.
6. For the Pure Competition Market Structure 2 a)List and explain the three characteristics of the MR-MC approach to determining the profit-maximizing output and price for the purely competitive firm. b) From the point of view of the business manager of a purely competitive firm in the short run, please explain the steps involved in determining the firms: Use the MR MC approach along with the appropriate cost curves to create your answer. C) For each of the 3 cases (profit maximization, loss minimization, and shut down) explain what would happen to economic profit if your federal government imposed a tariff on the importing of several of your key inputs, and why you would expect that result.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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6. For the Pure Competition Market Structure 2
a)List and explain the three characteristics of the MR-MC approach to determining the profit-maximizing output and
b) From the point of view of the business manager of a purely competitive firm in the short run, please explain the steps involved in determining the firms:
Use the MR MC approach along with the appropriate cost
C) For each of the 3 cases (profit maximization, loss minimization, and shut down) explain what would happen to economic profit if your federal government imposed a tariff on the importing of several of your key inputs, and why you would expect that result.
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