The condition of P = MR in a perfectly competitive market.

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Answer 1

Question

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

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ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.

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Answer 2

Question

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

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

Answer 3

Question

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Want to see more full solutions like this?

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

Answer 5

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Answer 6

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1

Price	Quantity	Total Revenue	Marginal Revenue
$25	1	25	25
$25	2	50	25
$25	3	75	25

Table 1 represents that in a perfectly competitive market, the price is equal to marginal revenue.

Economics Concept Introduction

Marginal revenue: Marginal revenue is the addition to the total revenue that results from selling an extra unit of output.

Answer 7

Chapter 9, Problem 1VQP

To determine

The condition of P = MR in a perfectly competitive market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Price is always equal to the marginal revenue of a firm in a perfectly competitive market. This is because of the charging of uniform price in the perfectly competitive market. And there is no change in price as additional quantity of output sale. It is expressed in Table 1 as follows:

Table 1