Why are price and marginal revenue identical for the firm in perfect competition?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Principles of Economics

ISBN: 978-1285064437

7th edition

Authors: Fred M. Gottheil

See More Books

Question Posted: Apr 21, 2015 09:35 AM

See More Questions

Why is a firm in perfect competition a price taker?
Why does a firm in perfect competition produce the quantity at which marginal cost equals price?
For the firm in Figure 9.11 that experiences constant long-run costs, calculate the following costs:a. At 200 units of output, long-run average cost is $ ________, long-run marginal cost is $...
Estimate the cash value of a life insurance policy as of December 31, 2016 based on the following information: Cash value as of January 2016 $90,000 Total premium during the year $ 8,000 Term life...
How can information systems support the supply chain?
It is January, and Joe Grad, whom we met in Chapter 5, is shivering in his apartment when the phone rings. It is Mandy Manana, one of the students whose price theory problems he graded last term....
Use the information from the balance sheet and income statement below to calculate the following ratios: Current ratio Acid-test ratio Times interest earned Inventory turnover Total asset turnover...
Eta Corporation approaches Lily White, the CEO and sole shareholder of MuCo, regarding the acquisition of MuCo's cat toy division assets (worth $1.3 million). As selling the assets would create a...
Who were some of the principal Portuguese explorers? What did they achieve and what were the ramifications of these voyages for Portugal, and the world?
Myrtle, a single, 19-year-old, full-time student, is claimed as a dependent by her parents in 2022. She has earned income of $13,000 and unearned income of $130. What is Myrtles 2022 standard...
Why is the perfectly competitive firm's long-run supply curve identical to its marginal cost curve lying above its ATC?
Economists refer to perfectly competitive firms as price-takers and to monopolies as price-makers. Why?
Match each of the numbered definitions with the correct term in the following list. Write the letter of your choice in the answer column. a. Bearer instrument b. Blank endorsement c. Counterclaim d....
How are unemployment compensation benefits related to the economy of a country? Explain briefly
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the...
How would we classify the LEI economic indicator? Explain briefly
Sunland Corporation purchased a limited-life intangible asset for $393000 on May 1, 2024. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the...
Gretta and Sam just had their first child. Gretta is excited and talkative about her birth experience and wants to keep her baby with her constantly. She tells you his name is Joseph and they will...
The annual results of a company with three departments are as follows. Head office fixed costs have been apportioned on the basis of the respective sales of the departments and will not be reduced if...
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
You have the following information about good X and good Y: Income elasticity of demand for good X: 3 Cross-price elasticity of demand for good X with respect to the price of good Y: 2 Would an...
Maria has decided always to spend one-third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. If Marias tastes...
The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: There were nearly four million fewer riders in December 1995, the first full month after the price of...
Topic of this Week's discussion is... Entry Strategies and Strategic Alliances Global Marketing and R&D The opening case explores the development of blockchain technology and how it has the...
Some information is provided below about five different investment funds, each investing in a different portfolio of assets. The funds are based in the United States (US) and some additional...
Given the following information, calculate the current value of Builtrite's common stock: current dividend is $3.00, projected super normal growth for three years at 13%, growth rate after year 3...

Why are price and marginal revenue identical for the firm in perfect competition?

Question:

Step by Step Answer:

Since the firm is a pricetaker and can produc...View the full answer

Principles of Economics

Students also viewed these Economics questions