Asked by Lissette Castaneda on Jul 24, 2024
Verified
Does a competitive firm have the ability to influence the quantity of output it supplies? Does it have the ability to influence its average revenue?
Average Revenue
The amount of money a firm earns per unit of output sold, calculated by dividing total revenue by the quantity sold.
- Recognize the attributes of competitive markets and the conduct of firms operating within these markets.
- Gain insight into the influence of market configurations on the determination of prices and strategies for maximizing profits among firms.
Verified Answer
ER
Erika ReamesJul 27, 2024
Final Answer :
A competitive firm has the ability to influence the quantity of output it supplies, but it does not have the ability to influence the price (average revenue).
Learning Objectives
- Recognize the attributes of competitive markets and the conduct of firms operating within these markets.
- Gain insight into the influence of market configurations on the determination of prices and strategies for maximizing profits among firms.