In a perfect market the TR and TC create a ___________________breakeven quantity whenever the MC is constant and the potential profit is ___________________________________?

Answered: In a perfect market the TR and TC…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 15CQ

See similar textbooks

Related questions

Question

In a perfect market the TR and TC create a ___________________breakeven quantity whenever the MC is constant and the potential profit is ___________________________________?

Expert Solution

Step 1

In the perfect competetion market, there exist a large number of buyers and sellers. They produce homogeneous goods that are identical in shape, size, color. Due to the large numbers of buyers and sellers, no single buyer and seller can influence the price. Thus, the seller is a price taker. Break-even quantity is achieved when the total revenue and total cost are equal.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions