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At the output level at which the slopes of the total revenue and total cost curves are equal, provided the firm is covering its variable cost
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If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
When a perfectly competitive firm is at its profit maximizing level of output you can say that it is?
is producing where price exceeds marginal costs
When a perfectly competitive firm is at its profit maximising level of output it is?
maximizing the difference between total revenue and total cost
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where -?
perfectly competitive industry become a monopoly， what changes
One difference between a perfectly competitive firm and a monopoly is that a perfectly competitive firm produces where?
perfectly competitive industry become a monopoly， what changes
What is the profit maximizing decision a perfectly competitive firm makes in the short run and explain why this firm can make profits in the short run but not in the long run?
A perfectly competitive firm maximizes profit in the short run by producing the quantity where marginal cost equals marginal revenue. In the short run, firms can make profits due to price fluctuations and temporary market conditions, but in the long run, new firms can easily enter the market, increasing competition and driving down prices to the point where economic profits are reduced to zero.
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
When a perfectly competitive firm is at its profit maximizing level of output you can say that it is?
is producing where price exceeds marginal costs
When a perfectly competitive firm is at its profit maximising level of output it is?
maximizing the difference between total revenue and total cost
In a firm where assets are the major cost how is profit maximized?
By increasing revenues or the cost of the assets.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
Is Apple Computer a perfectly competitive firm?
yes
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
How is a monopoly and a perfectly competitive firm similar?
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
