« previous next »

Author Question: If a perfectly competitive firm manufacturing chairs decides to produce 100 more chairs, what ... (Read 101 times)

Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536
on: Jun 29, 2018
If a perfectly competitive firm manufacturing chairs decides to produce 100 more chairs, what happens to the market price of a chair?
 
  What will be an ideal response?

Question 2

In the above table, which plan is a flat-rate tax?
 
  A) only plan A
  B) only plan B
  C) only plan C
  D) both plan A and plan C


amandalm

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jun 29, 2018
Answer to Question 1

The price will not change. Any one perfectly competitive firm is such a small part of the market that a change in its output has virtually no effect on the price. This result is why the firm's marginal revenue equals its price: No matter how much (or how little) the firm produces, the marginal revenue from one more unit always equals the price of the product.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536
Reply #2 on: Jun 29, 2018
Thank you


amandalm

  • Sr. Member
  • ****
  • Posts: 306
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

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?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

How genes produce proteins that determine traits in a simple dominant-recessive relationship. How genes produce proteins that determine traits in a simple dominant-recessive relationship.
Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ... As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ...
Effects of competitive inhibition on enzyme kinetics Effects of competitive inhibition on enzyme kinetics
A common autosomal recessive allele can produce a pedigree that looks like an autosomal dominant tra A common autosomal recessive allele can produce a pedigree that looks like an autosomal dominant tra
Video: Regulation of GFR: autoregulation via myogenic mechanism Myogenic mechanism

For a complete list of videos, visit our video library