Demand = Price = Marginal Cost.
yes the demand curve is perfectly inelastic and horizontal
perfectly elastic demand function.
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
Because for a perfectly competetive firm since the demand curve is perfectly elastic even a slightest price change doesnt add any further demand..so there is no change in marinal revenue also.Since revenue is demand multiplied with cost of unit..the two curves are same.
the demand curve for a good is very unlikely to be perfectly vertical because
yes the demand curve is perfectly inelastic and horizontal
perfectly elastic demand function.
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
Because for a perfectly competetive firm since the demand curve is perfectly elastic even a slightest price change doesnt add any further demand..so there is no change in marinal revenue also.Since revenue is demand multiplied with cost of unit..the two curves are same.
A diagram of a perfectly competitive market typically shows a horizontal demand curve representing perfect competition, a horizontal supply curve at the market price, and a point where supply equals demand to show equilibrium. It also includes the producer and consumer surplus to illustrate market efficiency.
the demand curve for a good is very unlikely to be perfectly vertical because
When supply and demand are perfectly elastic/inelastic
The demand curve would be perfectly elastic.
A perfectly elastic demand curve means that the quantity demanded changes infinitely with a change in price, while a perfectly inelastic demand curve means that the quantity demanded remains constant regardless of price changes.
the same as the market demand curve.
Since a firm in a perfectly competitive market is a passive price taker, the demand curve for the individual firm is a horizontal line. This means that the firm receives the same price for any level of output. This therefore means that Margincal Revenue curve and Average revenue curve is the same as the demand curve. D=P=MR=AR For example, the price facing a particular firm (perfectly competitive) is $2. If the firm sells two pens it receives a total revenue of $4, if it sells 3 pens, then $6 and so on. $4/$2=2 $6/$2=2
When demand curve intersects the supply curve.