AQuantity DemandedFigure 1Quantity DemandedFigure 2For a perfectly competitive firm, which line or lines represent the firm's demand and marginal revenue curveslines B and C respectively in figure 2lines A and C respectively in figure 2lines A and B respectively in figue 1line B only in figure 1Price, Marginalo Revenue, Total RevenueB.Price, Marginalo Revenue, Total Revenue

Introduction: Under perfect competition, the price is determined in the market by market forces i.e. The demand and supply. The firms are price takers and can sell any units of output at a prevailing market price. Under perfect competition, a single price prevails. The price and average revenue of firms remain unchanged or constant. Therefore, the demand curve is perfectly elastic in the perfect competition. Since the demand curve is the firm's average revenue curve, the AR curve is parallel to the X-axis. When price and average revenue remains unchanged or constant, marginal revenue is also equal to the average revenue, and both curves will coincide. The firms sell their output at a fixed price, hence, the total revenue will increase at a constant rate. This is the reason that the total revenue curve (TR) is an upward sloping straight line from the origin. Therefore, we can say that perfect competition is related to figure 1 only, and the firm's demand and the marginal revenue curves are coincide and horizontal to the X-axis. Hence, option (d) is correct.

Business

Economics

Quantity Demanded Figure 1 Quantity Demanded Figure 2 For a perfectly competitive firm, which line or lines represent the firm's demand and marginal revenue curves Price, Marginal o Revenue, Total Revenue Price, Marginal oRevenue, Total Revenue

Quantity Demanded Figure 1 Quantity Demanded Figure 2 For a perfectly competitive firm, which line or lines represent the firm's demand and marginal revenue curves Price, Marginal o Revenue, Total Revenue Price, Marginal oRevenue, Total Revenue

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

(Figure: Maximum Profit in Perfect Competition 3) Price and Costs $16 B 0 A) C. D In the figure, profit is maximized at point: B. A. D. IC Questions Filter (35) B D MC MR-P ATC 9 Quantity I
Solve all of these MCQ'S: In a perfectly competitive firm, firms always operate at the lowest per unit cost. true False An example of a perfectly competitive firm is the stock market New York city underground railway service mobile phone companies in Bangladesh Aarong's men's clothing section Does a perfectly competitive firm sell goods and services at the market equilibrium price? yes no Perfectly competitive market is efficient because it leaves no resources unutilized it causes no deadweight loss in the society it produces at the minimum marginal cost all of the above The demand curve of a perfectly competitive firm is horizontal coincides with the MR curve represents constant price all of them above For a perfectly competitive firm, Q= 70; P=$5; AFC = $2; AVC = $7. The firm should shut down The firm should continue The firm is indifferent The firm should is making profit The firm's entire marginal cost curve is its supply curve in the short run . Is this…
NEED HELP! I am absolutely bad at graphs I need help with A through F and can you please explain. Draw the MR, MC, AVC, ATC, Demand, supply, MC and MR for the following situations. For each of these situations show the total revenue, total cost area, and shade the profit or loss area, and if the situation is a shut down state why it should shutdown. a. A perfectly competitive firm showing a profitb. A perfectly competitive firm showing a loss but not a shut-downc. A perfectly competitive firm at a break-even pointd. A monopolist showing a profite. A monopolist showing a loss but not a shut-downf. A monopolist at a break-even pointg. Difference between a monopolist and a perfectly competitive firm for a profit situation on the same graph space.
ATC MC Z AVC V. W $13 $10 T $7 $4 N 5 7 9 10 12 144 The graph above shows cost curves of a firm in a competitive market. Several points are marked on the graph to allow tracing curves. Some of them can also be used to indicate various prices. Refer to the graph to answer the following questions: 1. The short-run supply of the firm can be traced by connecting points 2. If the market price is $4 then in the short-run the firm would supply units. At this price the firm would 3. If the market price is $10 then in the short-run the firm would supply units. At this price the firm would 4. If the market price is $7 then in the short-run the firm would supply units. At this price the firm would 5. In the short run, the firm is better off continuing to operate (i.e. Q>0) despite losses if the price is in the interval above and below %24
Please answer sections a-e attached.
No chatgpt answer pls i will give 10 upvotes
The figures below show (on the left) two possible demand curves and (on the right) two possible supply curves in the perfectly competitive hamburger market. Price per hamburger 0 A B D₂ D₁ Hamburgers per month Price per hamburger 0 Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. F c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G Hamburgers per month Assume that people consume either hamburgers or hot dogs. What will be the result of a decrease in the price of hot dogs? Hint: Are hamburgers and hotdogs complements or substitutes? S₂ S₁
uestion 5 Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? the fact that wool producers are "price takers' the assumption that wool producers in the industry do not 'differentiate their products the fact that the demand curve facing each wool producer is perfectly elastic There is nearly free entry into the wool industry.
24) What are shut-down losses (if the firm shuts down)?
Give type answer
Price 10 Quantity a. This firm will produce units of output at a price of b. The firm will earn a profit or loss (circle one) of c. What is the firm's short-run shut down price? d. What is the long-run market equilibrium price and quantity? e. What is the firm's profit or loss in the long run f. What kind of firm is this?
Typed plz and asap thanks