Redraw Figure 9-4 (a) for a perfect competitor. Why is dd horizontal? Explain why the horizontal dd

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Redraw Figure 9-4

(a) for a perfect competitor. Why is dd horizontal? Explain why the horizontal dd curve coincides with MR Then proceed to find the profit-maximizing MR and MC intersection. Why does this yield the competitive condition MC = P? Now redraw Figure 9-4.

(b) for a perfect competitor. Show that the slopes of TR and TC must still match at the maximum-profit equilibrium point for a perfect competitor

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Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Question Posted: Dec 05, 2015 03:31 AM

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Redraw Figure 9-4 (a) for a perfect competitor. Why is dd horizontal? Explain why the horizontal dd

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a b A horizontal demand curve means that price is fixed at say P Total revenue is ...View the full answer

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