Question: Why is it that every consumer and every firm in a perfectly competitive market is a 'price taker'?

Why is it that every consumer and every firm in a perfectly competitive market is a 'price taker'?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The total supply anddemand determine the ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

For a firm in a perfectly competitive market, the price of the good is always Group of answer choices greater than average revenue. equal to total revenue. equal to the firm's efficient scale of...

Q:

For a firm in a perfectly competitive market, the price of the good is always Group of answer choices greater than average revenue. equal to total revenue. equal to the firm's efficient scale of...

Q:

4. A firm in a perfectly competitive market (a price taker) faces what type of demand curve? a. Unit elastic b. Perfectly inelastic c. Perfectly elastic d. None of the above

Q:

21-Economic profit is equal to (i) total revenue - (explicit costs + implicit costs). (ii) total revenue - opportunity costs. (iii) accounting profit + implicit costs. (i) only (i) and (ii) (ii) and...

Q:

You are a manager in a firm in a perfectly competitive market. The price is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q 2 . (MC = 4 + Q) a. What price should you charge in the short run? b....

Q:

Question 5. For a firm in a perfectly competitive market, the price of the good is always equal to: a. marginal revenue b. average revenue c. equilibrium market price d. all of the above

Q:

You are hired as a consultant to a firm in a perfectly competitive market. The price of the product is USD 35. Fill-up the cost schedule below. What is the firm's profit maximizing level of output? Q...

Q:

For a firm in a perfectly competitive market, the price of the good is always Select one: a. Equal to total revenue. b. Equal to marginal revenue. c. Greater than average revenue. d. Greater than...

Q:

Question 4 For a firm in a perfectly competitive market, the price of the good is always equal to marginal revenue. equal to the firm's efficient scale of output. greater than average revenue. equal...

Q:

Looking for a firm and a perfectly competitive market the price of the good is equal to marginal revenue equal to total revenue greater than average revenue or all of the answers

Q:

Provide a scenario in which two threads in different processes are deadlocked, and another scenario in which two threads in the same process are deadlocked. Try to use instances of concrete (real)...

Q:

Consider a steam power plant that operates on a regenerative Rankine cycle and has a net power output of 150 MW. Steam enters the turbine at 10 MPa and 500°C and the condenser at 10 kPa. The...

Q:

How are large investors able to accumulate more control than cashflow rights in a firm? ( choose all correct answers ) By investing in firms which have a one - share - one - vote rule. By owning...

Q:

How does the winner of a lawsuit enforce the judgment?

Q:

Autocatalysis is the catalysis of a reaction by the products. For example, for a reaction A -> P it may be found that the rate law is v = k[A] [P] and the reaction rate is proportional to the...

Q:

Derive an expression for the rate of disappearance of a species A in a photochemical reaction for which the mechanism is: Hence, show that rate measurements will give only a combination of k2 and k3...

Q:

Photolysis of Cr (CO)6 in the presence of certain molecules M, can give rise to the following reaction sequence: Suppose that the absorbed light intensity is so weak that! «k4 [Cr (CO) 5M]....

Q:

Discussion: The Case of the Busted Blockbuster You have been hired by a law firm representing an author who sold movie rights to a novel to a small studio in exchange for a share of the profits. The...

Q:

Using the information below, calculate the average total depreciable life of the assets: Information from the Balance Sheet: 2012 Depreciable Assets $2,458,600 2011 $1,985,400 Accumulated...

Q:

What effect does a declaration of a 5% stock dividend have on the financial statements? Select one: O a. No effect on retained earnings and no effect on total shareholders' equity Ob. No effect on...