When a perfectly competitive firm is at the profit maximizing output level what will be the relationship between firm's price and firm's marginal cost.
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A:
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A:
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When a
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- why does price equal marginal revenue for the perfectly competitive firm? what is the relationship to the demand curve for the firm?Find the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.What is the lowest price where the firm makes positive profit?
- The shut-down point for a competitive firm is in the short run is whereThe graph below shows cost curves for a perfectly competitive firm. Price/Cost $50 $40 $30 $20 $10 0 10 20 30 Quantity MC 40 ATC AVC 50 At a price of $10, how many units will this firm produce if its goal is to maximize profit?Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
