Price £/unit 4. D Quantity 800 Figure 7 Demand curve for a firm in perfect competition A firm selling fresh sandwiches faces a demand curve D and produces at X as marked on Figure 7. Calculate the measures of revenue shown below for the sandwich seller. Give your answers to the nearest pound. The firm's total revenue =£ The firm's average revenue = £ The firm's marginal revenue = £

Price £/unit 4. D Quantity 800 Figure 7 Demand curve for a firm in perfect competition A firm selling fresh sandwiches faces a demand curve D and produces at X as marked on Figure 7. Calculate the measures of revenue shown below for the sandwich seller. Give your answers to the nearest pound. The firm's total revenue =£ The firm's average revenue = £ The firm's marginal revenue = £

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
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Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (a) Find the equilibrium price, the equilibrium quantity, the output supplied by the rm, and the prot of each rm. (b) Would you expect to see entry into or exit from the industry in the long run? Explain. What eect will entry or exit have on market equilibrium?
Perfect competition is a theoretical market structure in which the followingcriteria are met: All firms sell an identical product. All firms are price takers.Market share has no influence on prices. Given the characteristics describedabovei. Describe the factors that drive profits to zero in perfectly competitivemarkets in the long run. Explain carefully the incentives that drive themarket to a long run equilibrium. ii. Why would a firm choose to operate at a loss in the short run? iii. When do firms decide to shut down production in the short run?
Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (c) What is the lowest price at which each rm would sell its output in the long run? Is prot positive, negative, or zero at this price? Explain. (d) What is the lowest price at which each rm would sell its output in the short run? Is prot positive, negative, or zero at this price? Explain.