Output determination under perfect competition .

Question

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Answer 1

Question

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

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Answer 2

Question

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

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Answer 3

Question

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

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Answer 4

Question

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

Answer 6

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.

Answer 7

Chapter 10, Problem 1DQ

To determine

Output determination under perfect competition.

Answer 8

Expert Solution & Answer

Explanation of Solution

A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.