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How can one determine the method for calculating marginal revenue in perfect competition?
To determine the method for calculating marginal revenue in perfect competition, one can use the formula MR P(1 1/n), where MR is marginal revenue, P is price, and n is the number of units sold. This formula helps to understand how changes in quantity sold affect revenue in a perfectly competitive market.
What else can I help you with?
Can marginal revenue be negative in a perfect competition?
no
Why does demand equal marginal revenue in perfect competition?
In perfect competition, demand equals marginal revenue because firms in this market structure are price takers, meaning they have no control over the price of their product. As a result, they must sell their goods at the market price, which is also their marginal revenue.
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
Under perfect competition a firm can earn normal perfect in the long-run?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
The supply curve of a monopoly is its marginal cost curve true or false?
Flase, The suuply curve of a "perfect competition" is its marginal cost curve
Can marginal revenue be negative in a perfect competition?
no
Why does demand equal marginal revenue in perfect competition?
In perfect competition, demand equals marginal revenue because firms in this market structure are price takers, meaning they have no control over the price of their product. As a result, they must sell their goods at the market price, which is also their marginal revenue.
What are the resources allocation under perfect competition?
In economics, perfect competition is a structure that allocates resources as efficiently as possible. When this happens, price and marginal cost are equal.
Under perfect competition a firm can earn normal perfect in the long-run?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
The supply curve of a monopoly is its marginal cost curve true or false?
Flase, The suuply curve of a "perfect competition" is its marginal cost curve
In what type of market must market price always be equal to marginal cost?
Under perfect competition, since there is no room in perfect competition to earn any abnormal profits
Why is price per unit equal to the average revenue and marginal revenue of a firm under perfect competition?
Under Perfect competition , Marginal revenue is constant and equal to the prevailing market price, since all units are sold at the same price. Thus in pure competition MR = AR = P.
Perfect competition is efficient in the long run because price marginal cost and firms are producing at minimum?
Perfect competition is efficient in the long run because price _____ marginal cost and firms are producing at minimum _____.
Define the marginal production theory?
if the situation of perfect competition prevails in the economy then reward to each factor will equal to its productivity
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
Why marginal cost go decrease in initial phase under perfect competition?
Since, in a perfectly competitive market, prices are fought down to Price = Marginal Cost, the only way to make a strict economic profit is to lower marginal cost.
How are price and output determined under pure or perfect competition?
Price is determined by the market and Output level is the only choice the firm has to make. Since firms want to maximise profit, it will produce at a level where Marginal Cost equals Marginal Revenue. This is the profit maximisation pointUnder the perfect competition sellers will reduce prices in order to sell more than their competitors.
