why does price equal marginal revenue for the perfectly competitive firm? what is the relationship to the demand curve for the firm?

Q: Why is marginal revenue for a firm in perfect competition equal to the market price?

A: The increase in revenue that comes from selling one more unit of output is known as marginal revenue…

Q: Determine and explain the profit maximization output of a perfectly competitive firm.

A: Perfect competition is a competition where both buyers and sellers have perfect information about a…

Q: What does the demand curve for a perfectly competitive individual seller look like? Explain the…

A: Perfect competition is one of the types of market structures.

Q: The figure to the right represents the cost structure for a perfectly competitive firm with its…

A: In a competitive firm there are large number of firms selling identical products thus having no…

Q: In the short run, a strawberry farm operating in a perfectly competitive market would produce…

A: There are different constraints for a perfectly competitive firm in the short-run and in the…

Q: xplain the three possible profit-maximizing positions of perfectly competitive firms in the short…

A: To expand profits in an entirely competitive market, firms set minor income equivalent to minimal…

Q: Why is the marginal revenue of a perfectly competitive firm equal to the market price?

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: At what output does a perfectly competitive firm maximize its profit? when marginal cost equals…

A: A perfectly competitive firm is the one where there are large number of buyers and sellers selling…

Q: Describe how a firm in perfect competition makes profit-maximizing decisions

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Marginal Revenue is the cash a firm makes for each extra deal. As such, it decides how much a firm…

Q: Briefly explain why the following statements are either TRUE or FALSE: a. Perfectly competitive…

A: A perfectly competitive firm is one that deal has to compete with many firms to sell a specific…

Q: The figure below represents the short-run curves for TK Ltd, a popular Chinese cuisine restaurant.…

A: The above question is related to the concept of market structure. There are primarily two types of…

Q: g. What is the firm's profit if it shuts down? h. In the long run, should this firm continue to…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Perfectly competitive firms are price takers. (A) What would happen if a perfectly competitive firm…

A: A perfectly competitive market is one where a firm has no incentive to deviate from market value for…

Q: What level of output should this firm produce in the short run? What price should this firm charge…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the…

A: A perfect competition(PC) market is one with many buyers and sellers producing identical products.…

Q: The table below displays cost information for a firm operating in a perfectly competitive market.…

A: The total cost of the firm is divided by the fixed cost and the variable cost. variable cost changes…

Q: explain why is the long run market supply curve horizontal in long run in perfect competitive…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?

A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…

Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…

A:

Q: Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell…

A: A perfectly competitive firm earns maximum profit or minimize loss by producing at level of output…

Q: In competitive markets economic profit becomes zero in the long-run. However, it is also possible…

A: Accounting profit: Accounting profit is obtained by deducting the total explicit cost from the the…

Q: Create a graph that shows the cost curves and profit maximizing output level for a perfectly…

A: A perfectly competitive firm is characterized by five factors: infinite number of buyers and…

Q: For a perfectly competitive firm, what is the relationship between Price and Marginal Revenue?

A: For a perfectly competitive firm price is equal to marginal revenue

Q: n the short run, in order to maximize profit, a firm in a perfectly competitive market will operate…

A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…

Q: ques. 46 The demand curve of a perfectly competitive firm is vertical. True False

A: A perfectly competitive market is a market, in which the number of buyers and sellers are infinite.…

Q: Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run.

A: Perfect competition refers to the type of market organization in which there are many buyers and…

Q: Graph the demand curve for a pure competitive firm, label the graph. What is the relationship…

A: Pure or perfect competition refers to the type of market organization in which there are many buyers…

Q: g. What is the firm's profit if it shuts down? h. In the long run, should this firm continue to…

A: A producer or seller draws out highest amount of profits when its marginal revenue , the…

Q: Meow Chow sells cat food in a perfectly competitive market and has the following cost curves:…

A: The firm produces at MC=P or the nearest lower MC P=0.63 and MC=0.6

Q: Explain what the long run profit conditions are for a perfectly competitive market

A: Perfectly Competitive Market is the one where there are large number of buyers and sellers, selling…

Q: The graph on the right shows cost curves for a perfectly competitive firm. Firm's Supply Curve Use…

A:

Q: Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…

Q: For a firm in a perfectly competitive market, the price of the good is always A. Equal to marginal…

A: There are many buyers and sellers in a competitive market structure . Firms are free to enter or…

Q: If a perfectly competitive firm operates in the short run but exits the industry in the long run,…

A: A perfect competitor exist the industry when Price < ATC (or TR < TC) and firm is incurring…

Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…

A: A competitive firm faces a parallel price line because in a competitive market, the firm is a price…

Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…

A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…

Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC 10…

A: Profit is maximized at a point where MR is equal to MC.

Q: The marginal revenue curve for a a competitive firm is

A: The marginal revenue curve for a competitive firm is simply a horizontal line at the market price…

Q: MR Quantity (A) AMR Quantity (B) MR MR Quantity (C) D Quantity (D) Which of the above shows the…

A: It is the market where the condition is different from perfect competitive firms.

Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…

A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…

Q: The marginal revenue curve for a perfectly competitive firm is

A: Marginal revenue is the additional revenue earned through the sale of additional output. A graphical…

Q: In the above figure, The cost curves of a typical perfectly competitive curve are show. What will…

A: In a competitive firm due to free entry and exit the firm earns normal profit in the long run.

Q: (Figure: Demand and Average Cost Curves) Which of the following diagrams represents the demand and…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…