When a perfectly competitive firm is at the profit maximizing output level what will be the relationship between firm's price and firm's marginal cost.
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A:
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- why does price equal marginal revenue for the perfectly competitive firm? what is the relationship to the demand curve for the firm?What is the lowest price where the firm makes positive profit?Find the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.
- The shut-down point for a competitive firm is in the short run is whereWill a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.The graph below shows cost curves for a perfectly competitive firm. Price/Cost $50 $40 $30 $20 $10 0 10 20 30 Quantity MC 40 ATC AVC 50 At a price of $10, how many units will this firm produce if its goal is to maximize profit?