A firm in perfect competition is producing 42 units of a product. They only produce this one type of product and earn a total revenue of $525. The demand line for that product crosses the y-axis at $12.50. True or false?

A firm in perfect competition is producing 42 units of a product. They only produce this one type of product and earn a total revenue of $525. The demand line for that product crosses the y-axis at $12.50. True or false?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 9SQ

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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