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

Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

See More Books

Question Posted: Nov 07, 2023 02:25 AM

See More Questions

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, 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.
Assume the following for the Howard Saks firm: Actual earnings of $28,000, beginning book value of $250,000, ending book value of $350,000, cost of capital of 6%. What are their abnormal earnings?
How do you calculate net working capital, and why is it important?
When does a project close? a. When a project is canceled b. When a project runs out of money c. When a project is successfully completed d. All the above are correct answers
Explain how the control variate technique is implemented.
Sales for the past 12 months at Dalworth Company are given here. a. Use a three month moving average to forecast the sales for the months May through December. b. Use a four-month moving average to...
(d) What is the value of "j" after the execution of the partial code in Figure 4.2? Explain your answer. int j = 10; for (int i = 0; 0; i
The following graph represents the situation of Marguerites Caps, a firm selling caps in the perfectly competitive cap industry. In each part of this problem, be sure to show how you calculated your...
Financial writer Michael Lewis once remarked, The sad truth, for investors, seems to be that most of the benefits of new technologies are passed right through to consumers free of charge. a . What do...
Rewrite the following loops without using the enhanced for loop construct. Here, values is an array of floating-point numbers. a. for (double x : values) { total = total + x; } b. for (double x :...
The FDA issued a final compliance guidance related to pharmacy compounding. In the guidance, the FDA clarified which activities compounding pharmacies could lawfully engage and which activities the...
You are the only pharmacist at a meeting with other healthcare professionals. A physician brings up the topic of DTC drug ads on television and in magazines, lamenting that the ads are so seductive...
A patient asks the pharmacist whether the FDA regulates cosmetics and if so, in what manner. How should the pharmacist answer the patient?
A patient purchasing syringes and needles for insulin injection asked the pharmacist whether the FDA regulates these products and if so, in what manner. Provide a complete response to this patient.
Which of the following are not examples of a vicious cycle of deleveraging? Explain. a. Your university decides to sell several commercial buildings in the middle of town in order to upgrade...
This continues our accounting for Pure Water, Inc. As stated in the continuing problem in Chapter 4, Pure Water, Inc., began selling pools and spas in August. For this problem, we will focus on the...
How do individual companies respond to economic forces throughout the globe? One way to explore this is to see how well rates of return for stock of individual companies can be explained by stock...
According to an article on reuters.com, Fiat Chrysler Automobiles, the firm that sells Dodge and Chrysler cars and trucks in the United States, decided to invest $1 billion to modernize two of its...
Suppose you are building an economic model to forecast the number of people employed in U.S. manufacturing in 2024. Should your model take into account possible changes in economic policy enacted by...
To receive a medical license in the United States, a doctor must complete a residency program at a hospital. Hospitals are not free to expand their residency programs in a particular medical...
1. A spring with a force constant of 5.2 N/m has a relaxed length of 2.45 m. When a mass is attached to the end of the spring and allowed to come to rest, the vertical length of the spring is 3.57 m....
Assume the government issues a semi - annual bond that matures in 5 years with a face value of $ 1 , 0 0 0 a coupon yield of 1 0 percent. What would be the price if the yield to maturity ( semi -...
Suppose the current exchange rate for the Polish zloty is zl 2.94. The expected exchange rate in three years is zl 3.01. What is the difference in the annual inflation rates for the United States and...

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 ma...View the full answer

Microeconomics

Students also viewed these Business questions