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Allocative efficiency since the industry is producing the amount of product that equates society's valuation of that product and the price of the product.
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In long-run equilibrium P equal minimum ATC equal MC. The equality of P and minimum ATC means the firm is achieving?
Productive efficiency.
What is the condition to get maximum profit of a firm in perfect competition?
Mr=mc
A firm will only employ additional workers to which point?
to the point where MRP=MC
What will a price taking firm do with a loss?
Minimize its loss by producing until MC = MR
When a firm increased its output by one unit its AFC decreased This indicates what?
mc=ac
In long-run equilibrium P equal minimum ATC equal MC. The equality of P and minimum ATC means the firm is achieving?
Productive efficiency.
What can happen if the MRP is greater then a firm's MC?
The firm can afford to hire more workers
What can happen if the MRP is greater than a firm's MC?
The firm can afford to hire more workers.
Explain why the MC curve can be considered to be the individual firm's supply curve under conditions of Perfect Competition can the whole length of MC be considered the supply curve Whywhy not?
if the MC=Price, the firm got the maximum profit. that's what they want.
What is the condition to get maximum profit of a firm in perfect competition?
Mr=mc
A firm will only employ additional workers to which point?
to the point where MRP=MC
What will a price taking firm do with a loss?
Minimize its loss by producing until MC = MR
When a firm increased its output by one unit its AFC decreased This indicates what?
mc=ac
How do you derive the supply curve of an industry from the supply curve of the firm?
Set MC=AVC and solve for the values that a firm will produce at. Once you've found these values, set price = MC(S(p)) and solve for supply in terms of quantity.
What does MC on a ring mean?
What does mc 14k means inside a ring
What does MC mean on barbie doll price?
MC means mint condition. MOC means mint on card.
How does a firm know when it can afford to hire more workers?
if the MRP is greater than a firms MC
