This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the relationship between price and marginal revenue for firms in perfect competition? ... (Read 111 times)

Yi-Chen

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
What is the relationship between price and marginal revenue for firms in perfect competition? Explain.
 
  What will be an ideal response?

Question 2

What role do firms play in output markets? What role do firms play in factor markets?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

234sdffa

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

In perfect competition, price and marginal revenue are equal. This occurs because firms in perfectly competitive markets are price takers. Each additional unit sold results in an increase in revenue equal to the market price of the product.

Answer to Question 2

Firms are the sellers in output markets and are the buyers in factor markets.


Yi-Chen

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
:D TYSM

milbourne11

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

The different types of competition in nature. The different types of competition in nature.
Relationship of the spindle-assembly checkpoint (SAC) with the cell-cycle machinery Relationship of the spindle-assembly checkpoint (SAC) with the cell-cycle machinery
5-4 The relationship between vapor pressure and temperature—in this case for water. As the ... 5-4 The relationship between vapor pressure and temperature—in this case for water. As the ...
Economic objectives of firms Economic objectives of firms
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
A company that makes environmental measuring devices has calculated their revenue and costs as ... A company that makes environmental measuring devices has calculated their revenue and costs as ...
Video: Coaductile pathway, Timing of contraction signal & Conduction system and ECG

For a complete list of videos, visit our video library