Asked by Lauren Terrell on May 06, 2024
Verified
Refer to Table 8.1. That the firm is perfectly competitive is evident from its:
A) increasing marginal cost.
B) increasing total cost.
C) zero economic profits.
D) constant marginal revenue.
E) absence of marginal values at Q = 0.
Perfectly Competitive
A market structure characterized by numerous small firms, identical products, and free entry and exit, leading to firms being price takers.
Marginal Revenue
The supplementary earnings obtained through the sale of one more unit of any good or service.
- Comprehend how businesses operate within perfectly competitive markets, focusing on the determination of prices and output levels.
- Understand the analysis of demand curves and their influence on the pricing and production choices of firms in perfect competition.
Verified Answer
HP
Hannah PicinichMay 06, 2024
Final Answer :
D
Explanation :
A perfectly competitive firm faces a constant price for its product, which translates into a constant marginal revenue (MR) equal to the price.
Learning Objectives
- Comprehend how businesses operate within perfectly competitive markets, focusing on the determination of prices and output levels.
- Understand the analysis of demand curves and their influence on the pricing and production choices of firms in perfect competition.