Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
A profitmaximizing firm produces output at the point where marginal rev...View the full answer
Answered By
Ajeet Singh
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life.
I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge.
I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields.
Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a teacher. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
4.90+
7+ Reviews
15+ Question Solved
Related Book For
Economics Principles and Policy
ISBN: 978-0538453653
12th edition
Authors: William J. Baumol, Alan S. Blinder
Question Posted:
Students also viewed these Economics questions
-
Explain why a perfectly competitive firm will not advertise.
-
The perfectly competitive firm does not increase its quantity of output without limit, even though it can sell all it wants at the going price. Why not?
-
Explain why a perfectly competitive firm will shut down in the short run if price is lower than average variable cost but will continue to produce if price is below average total cost but above...
-
Consider a portfolio of the following derivatives where the counterparty is an OECD bank. Derivative 8-year interest rate swap 6-month option on an equity 1-year swap on precious metals 9-month...
-
Littleton Books has the following transactions during May. May 2 Purchases books on account from Readers Wholesale for $3,300, terms 1/10, n/30. May 3 Pays freight costs of $200 on books purchased...
-
You own 10,000 shares of Broadcom, which currently sells for $304.50 and has announced its plan to pay a $4.50 dividend. You dont need the cash flow and would prefer that Broadcom reinvest earnings...
-
A 3/2 solenoid valve is needed for a SIF final element. A CV rating of 0.1 is required. The lowest dangerous failure rate is desired. Which type of solenoid valve is the best choice?
-
You recently graduated from college, and your job search led you to East Coast Yachts. Because you felt the companys business was seaworthy, you accepted a job offer. The first day on the job, while...
-
From the reading Welcome to Psychology 2e , an OpenStax in what ways do you have a better understanding of psychology? give examples and cite from the text
-
Discuss local examples of a retailer applying mass marketing, concentrated marketing, and differentiated marketing.
-
If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what does it pay a perfectly competitive firm to do if a. The market price is $51? b. The price is $36? c....
-
Explain why a demand curve is also a curve of average revenue. Recalling that when an average revenue curve is neither rising nor falling, marginal revenue must equal average revenue, explain why it...
-
Use series to estimate the integrals values with an error of magnitude less than 10 -5 . -0.6 sin x dx
-
Suppose the real risk - free rate is 3 . 5 0 % , the average future inflation rate is 2 . 5 0 % , a maturity premium of 0 . 2 0 % per year to maturity applies, i . e . , MRP = 0 . 2 0 % ( t ) , where...
-
An electricity company pays a dividend $ 1 . 6 4 per share and the share price is $ 2 7 . a ) If the investors believe that the dividend growth rate will be 3 % annually, what will be the yield that...
-
Tektron Industries applies overhead on the basis of 200% of direct labor cost. Job No. 275 is charged with $30,000 of direct materials costs and $40,000 of manufacturing overhead. What are the total...
-
A polymer is injected into a mold at 205 C. The mold is 35 C. The part is 6 mm thick, and can be modeled as a plate. The glass transition temperature of the polymer is 125 C. The density of the...
-
x 2-1.02 X T(X. y) Tot X=X1 xupuRy & incident angle a: reflection angle 090-8 m = to 8 riy-y = m (x-x) ton & = x1 tonB=26, tonx = 26 X1 what is the ton y and r.
-
Under what circumstances would an investor record a gain on the sale of a bond investment? When would a loss on the sale of a bond investment be recorded?
-
Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.
-
In 2007 and 2008, the international value of the dollar fell. This development was viewed with alarm in Japan. Why?
-
Use an aggregate supply-demand diagram to analyze the effects of a currency appreciation.
-
Explain why X - IM = (S - I) - (G - T). Now multiply both sides of this equation by 1 to get IM - X = (I - S) + (G - T) And remember that the trade deficit, IM - X, is the amount we have to borrow...
-
Milden Company is a merchandiser that plans to sell 4 1 , 0 0 0 units during the next quarter at a selling price of $ 5 9 per unit. The company also gathered the following cost estimates for the next...
-
How do organizational learning theories, such as the learning organization concept and knowledge management practices, contribute to sustained competitive advantage and organizational resilience in...
-
Harbert, Incorporated had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of Accounts Receivable was $10,500. During the period, Harbert collects $72,000 of its...
Study smarter with the SolutionInn App