In perfect competition, the marginal revenue curveand the firm's demand curve are identicalis always above the firm's demand curveis always below the firm's demand curveis upward sloping

In perfect competition, the marginal revenue (MR) curve and the firm's demand curve are…

Answered: In perfect competition, the marginal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

the profit maximization condition for a perfectly competitive firm in the short-run- is
Which of the following is not a characteristic of a perfectly competitive market? a) Many buyers and sellers b) Homogeneous products c) Barriers to entry d) Perfect information
Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.
In perfect competition, the maximum benefit is achieved where the vertical difference between total revenue and total cost is smallest. True or false
Which of the following statements applies to a purely competitive producer? a. it will not advertise its product b. in long-run equilibrium, it will earn an economic profit c. its product will have a brand name that elicits customer loyalty d. its product is slightly different from those of its competitors [ don't give chatgpt answer]
Suppose, under Perfect Competition, firms are earning an economic profit in the Short-Run. What will happen in the Long-Run? Group of answer choices Firms will enter the industry in the Long-Run There will be no change in the number of firms in the industry in the Long-Run Some firms will exit the industry in the Long-Run There isn’t enough information to determine what will happen in the Long-Run
Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180
In pure competition, product price is Greater than marginal revenue Equal to marginal revenue Equal to total revenue Greater than total revenue
Use the values for a perfectly competitive firm below to answer the questions: Price Quantity Total Cost Fixed Cost Variable Cost $10 2,000 $24,000 $8,000 $16,000 (A) Should this firm shut down in the short run? (B) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (C) Are your answers to (a) and (b) different? Explain in one to four sentences.
These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. In the long run we should expect: MC ATC AVC MR P Ono change in the number of firms in this industry. firms to leave the industry, market supply to fall, and product price to rise. firms to leave the industry, market supply to rise, and product price to fall. firms to enter the industry, market supply to rise, and product price to fall.

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In perfect competition, the marginal revenue curve and the firm's demand curve are identical O is always above the firm's demand curve O is always below the firm's demand curve is upward sloping