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Author Question: What is the profit maximizing (loss minimizing) quantity for the perfectly competitive firm to ... (Read 43 times)

Jipu 123

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on: Jun 30, 2018
What is the profit maximizing (loss minimizing) quantity for the perfectly competitive firm to produce?

Question 2

Marginal utility can be measured by the change in:
 a. total utility / the change in quantity.
  b. income / the change in utility.
  c. quantity / the change in income.
  d. price / the change in utility.
  e. income / the change in price.


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af

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The profit maximizing (loss minimizing) quantity for any firm to produce exists at that output level in which marginal revenue equals marginal cost (MR = MC). For the perfectly competitive firm, price (P) equals marginal revenue. Therefore, the profit maximizing quantity for the perfectly competitive firm to produce exits at that output level where P = MC.

Answer to Question 2

a


Jipu 123

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

sarah_brady415

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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