Answered: When there are many identical companies…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please refer to the figure. When there are many identical companies in the market, the small business owner will take the market equilibrium price at $____ and its MR will be constant at $____ (Note: this is about a competitive market player) A) 2;2 B)3.5;3.5 C)4;4 D)6.5;6.5

Price
12
11
10
MC
9.
8
7.
ATC
P -3.5
Market Equilibrium Price P 3.5
when the market consists of
many identical companies.
MR (A monopolıst)
10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Quantity
5,
443
2)
1.

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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