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What else can I help you with?
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
Does monopolistically competitive firms have horizontal marginal cost curve?
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
Why is the demand curve the same as the marginal revenue curve for a perfectly competitive firm?
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.
Why is the demand curve for a good very unlikely to be perfectly vertical?
the demand curve for a good is very unlikely to be perfectly vertical because
The labor demand curve of a purely competitive seller perfectly elastic?
yes the demand curve is perfectly inelastic and horizontal
What type of curve does the perfectly competitive firm face?
perfectly elastic demand function.
Does monopolistically competitive firms have horizontal marginal cost curve?
No it does not. Only Perfectly Competitive firms have a horizontal Marginal Cost curve, which is also there demand curve.
Why is the demand curve the same as the marginal revenue curve for a perfectly competitive firm?
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.
What does a diagram of a perfectly competitive market look like?
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.
Why is the demand curve for a good very unlikely to be perfectly vertical?
the demand curve for a good is very unlikely to be perfectly vertical because
When does supply curve look like a demand curve?
When supply and demand are perfectly elastic/inelastic
What is the difference between a perfectly elastic and a perfectly inelastic demand curve in economics?
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.
What is the distinctive feature of the demand curve of a firm in pure competition?
The demand curve would be perfectly elastic.
Why average revenue curve of a firm under perfect competition is a horizontal line?
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
The demand curve any monopolist uses in making output decisions is?
the same as the market demand curve.
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
