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What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
What is the shape and behavior of the supply curve for a perfectly competitive firm in the short run?
The supply curve for a perfectly competitive firm in the short run is typically upward sloping and relatively elastic. This means that as the price of the good or service increases, the firm is willing and able to produce more of it. However, the firm's ability to adjust its output is limited by its fixed inputs in the short run.
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.
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.
What is the demand curve for output of a perfectly competitive firm?
Demand = Price = Marginal Cost.
What is a firm's short run 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.
What is the shape and behavior of the supply curve for a perfectly competitive firm in the short run?
The supply curve for a perfectly competitive firm in the short run is typically upward sloping and relatively elastic. This means that as the price of the good or service increases, the firm is willing and able to produce more of it. However, the firm's ability to adjust its output is limited by its fixed inputs in the short run.
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.
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
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.
A firm operating in a purely competitive resource market faces a resource supply curve that is?
B. Perfectly elastic This is because it is operating in a perfect competitive market
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 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
A purely competitive firm's short-run supply curve is?
Because of the price taking nature of the firm in the perfectly competitive market. The supply curve would be the portin of the (Marginal Cost Curve) that disects the (P=Ar=Mr curves). Som from that point up would be the supply curve, to produce below that point would not be beneficial to the establishment. Up sloping and equal to the portion of the marginal cost curve that lies above the average variable cost. The demand curve is also perfectly elastic, this too contributes to the fact.
Is Apple Computer a perfectly competitive firm?
yes
