Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be

Question:

Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be allocatively efficient.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Economics

ISBN: 9781506699868

2nd Edition

Authors: OpenStax

See More Books

Question Posted: Oct 31, 2023 07:24 AM

See More Questions

Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F C/F C/F C/F C/F C/F C/F C/F Rate Alpha -79 20 25 30 35 40 N/A N/A 13% Beta - 80 25 25...
Consider this proposal to open a gold mine. The size and timing of the cash flows are shown below: Year 0 -$800,000 Year 1 $500,000 Year 2 $1,000,000 Year 3 -$500,000 Opening the mine costs $800,000....
Multiple Choice Questions 1. In the long run, which of the following outcomes is most likely for a firm? a. Zero accounting profits but positive economic profits b. Zero accounting profits c....
The population (in millions) of a country in 2015 and the expected continuous annual rate of change k of the population are given. (a) Find the exponential growth model P = Ce kt for the population...
A jury in West Virginia held that a coal company was liable for various claims made against it. They awarded the plaintiffs $50 million in punitive damages. Knowing that the decision would be...
Refer to the financial statements of Apple Inc. in Appendix A. Instructions a. Calculate the accounts receivable turnover and average collection period for 2020. (Assume all sales were credit sales.)...
In question 1, identify the marketing as opposed to the business strategy. Data From Question 1: What is a business strategy? Do you agree with the definition proposed? Illustrate your answer with...
Cawley Companys Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cawley then assembles and packages such items as blenders...
Bank extends a revolving line of credit to Epstein Corp., secured by Epstein's inventory and receivables. Epstein has now filed bankruptcy. At all times during the 90 days preceding the filing the...
A single firm in a perfectly competitive market is relatively small compared to the rest of the market. What does this mean? How small is small?
Productive efficiency and allocative efficiency are two concepts achieved in the long run in a perfectly competitive market. These are the two reasons why we call them perfect. How would you use...
Poverty rates and high school graduation rates for the 50 states and the District of Columbia are graphed below. a. What does the trend tell us about the relationship between poverty and high school...
A sole proprietor provides legal services to over 40 clients. These clients provided a 1099-misc to the sole proprietor at the end of the year. The sole proprietor can claim tax deductions for a...
Use the information in the following table to answer the questions: Activity A B C D EFGH I Duration 4 64 24534 2 a. Construct the network diagram. b. Identify all paths and their times Predecessor...
For the purposes of filing financial reports with state insurance regulators, an insurance company's assets are classified as either admitted assets or non-admitted assets. Which would be considered...
The Fashionable Leather Company manufactures two product lines (shoes and jackets) and operates in four regions (North, South, East, and West). The company buys direct materials and supplies only...
Benefit formula: 2% years of service highest salary prior to retirement Additional facts about the plan (as of December 31, 2020): Sumeet's years of service provided so far, as of December 31, 2020:...
Each morning, Mike Prescott stocks the drink case at Mikes Beach Hut in Virginia Beach, Virginia. Mikes Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot...
Suppose that A is an m n matrix with linearly independent columns and the linear system LS(A, b) is consistent. Show that this system has a unique solution.
Issued stock is defined as stock that ________. A. Is available for sale B. That is held by the corporation C. Has been sold to investors D. Has no voting rights
You are an accountant working for a manufacturing company that makes personal care products and has recently decided to incorporate. The company incurred a total of $7,900 for attorneys fees,...
Do some research: why did Facebook choose to reincorporate in Delaware?
What does the term "rolling grass" mean in Hollywood? Describes a particularly bad screening of a film, as the reels were "rolling gross.
Ampere's law without Maxwell's correction reads = o. a) (1 pt) Show mathematically and explain in words why this law cannot be physical. b) (4 pts) Verify Maxwell's correction to Ampere's law.
If you were to borrow $8,600 over five years at0.12 compounded monthly, what would be your monthly payment?

Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be

Question:

Step by Step Answer:

Think of the market price as representing the gain to society from a ...View the full answer

Principles Of Economics

Students also viewed these Business questions