Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition

Question:

Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC.

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

Step by Step Answer:

Related Book For answer-question

Essentials Of Economics

ISBN: 9780134797731

6th Edition

Authors: R. Glenn Hubbard, Anthony Patrick O brien

See More Books

Question Posted: Mar 17, 2024 02:00 PM

See More Questions

Explain why it is true that for a firm in a perfectly competitive market, P = MR = AR.
Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC.
Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition MR = MC is equivalent to the condition P = MC.
Consider the function f(x) = sin(x). (a) Give the Taylor polynomial Ps(r) of degree 5 about a = /6 of this function. Note: use the exact values of sin(7/6)= 1/2 and cos(/6)= 3/2. (b) Give the nested...
Outline your discussion in to three different brain strom on the Abortion. Brainstorm One: Free Writing Brainstorm Two: Listing Brainstorm Three: Journalistic Questions
Suppose we include the lead resistance in the calculation of temperature for an RTD. If R 3 = 5000 ohms, R a = 50 ohms, V 0 = 3 volts, and V = 6.5 volts, what is R? (Type in a one-decimal number.)
Reconsider the data from Problem 4. Management has expressed some concern over the life of the project and the impact of possible early termination. As a result, you have developed additional data...
Carter Enterprises is involved in the soybean business in South Carolina, Alabama, and Georgia. The president of the company, Earl Carter, goes to a commodity sale once a month where he buys and...
Outback Outfitters sells high quality hiking boots. They have a capacity to make1500 pairs per year. Each pair of hiking boots sells for $630. Annual fixed costs are $280,000,and the variable costs...
An article in the Wall Street Journal noted that demand for organic foods was growing rapidly in the United States. According to the article, meat and egg companies like Pilgrims Pride Corp., Perdue...
Which of the following are examples of a firm experiencing positive technological change? a. A fall in the wages JetBlue pays its mechanics leads it to lower its ticket prices. b. A training program...
Certain tropical plants create extra protection from hungry arthropods, such as caterpillars, by secreting volatile terpenoids, such as nerolidol and 4,8-dimethyl-1,3,7-nonatriene, in order to...
Able Co. received $25,000 from a customer on April 1 for services to be provided partially in April and the rest in May. At the end of April, 47% of the services were complete. What is the amount...
In this assignment we will consider a game played on a square board by two players. The board is divided into a grid of size R x R where players take turns placing tiles. The game is won by the...
What is the market value of the debt Consider the following company, Book Value of Debt YTM Coupon Coupon Payments Years Corporate Tax Rate # of Preferred Shares Price of Preferred Share Dividend per...
A fitness instructor wants to find out the number of students who are underweight, ideal, overweight, and obese. The BMI (Body Mass Index) is a common tool for deciding whether a person has an...
You are to develop a simple Binary Search Tree ADT and run it against a test program. Avoid the temptation of finding code online. I am aware of all the available solutions and will be looking...
Figure 229 shows the velocity of a train as a function of time. (a) At what time was it was velocity greatest? (b) During what periods, if any, ways the velocity constant? (c) During what periods, if...
Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?
You go out to the best restaurant in town and order a lobster dinner for $40. After eating half of the lobster, you realize that you are quite full. Your date wants you to finish your dinner because...
The great 18th-century economist Adam Smith wrote, "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable...
It is sometimes suggested that the Fed should try to achieve zero inflation. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero? If...
What are the changes in values, principles, and subject matter that cognitive psychology brought to the field of psychology?
What has changed about the way you think about psychology after taking a psychology class? Why? How can you understand events that happen in your life through the lens of psychology (give an...
Hello Dr. Jorgensen and Classmates, After watching the video by Dr. Laurence Steinberg, Professor of Psychology at Temple University, I found that there were a lot of good and relevant points that...

Explain why it is true that for a firm in a perfectly competitive market, the profit-maximizing condition

Question:

Step by Step Answer:

In a perfectly competitive market where many firms sell identical products and have no market power ...View the full answer

Essentials Of Economics

Students also viewed these Business questions