Explain why a demand curve is also a curve of average revenue. Recalling that when average revenue curve is not falling nor rising, marginal revenue must equal average revenue, explain why it is always true that $ = MR = AR for the perfectly competitive firm

Q: The graph below shows data for the production of apples for an individual firm operating in a…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: f a competitive firm finds that its average variable cost is decreasing at its current profit…

A: A competitive firm is a firm that doing business in that market where the large number of buyers and…

Q: Why is the demand curve facing an individual firm in a perfectly competitive market horizontal? Does…

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Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

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A: Economic profit is the sum of money that is left over after revenue has been reduced by both…

Q: "Consider a perfectly competitive firm in the following position: Output is 4000, market price = $…

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A: The question is asking about the conditions under which a firm would choose to exit a perfectly…

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Q: A perfectly competitive firm produces at an output at which marginal revenue is less than marginal…

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Q: Consider the perfectly competitive market for dress shirts. The following graph shows the marginal…

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Q: The following graph illustrates the demand and marginal revenue curve (D=MR) of a perfectly…

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Q: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.

A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…

Q: In a perfectly competitive market, what is the marginal revenue curve

A: Meaning of Perfectly Competitive Market: The perfectly competitive market exists when there is a…

Q: Use the green rectangle (triangle symbols) to plot the total cost of producing 40 units. Next, use…

A: The total cost is defined as total of the expenditure that is incurred to produce the units of…