In a perfect competitive market the typical firm cannot affect the price of its output and so it maxmises profits or minimises losses when marginal cost is?

/in /by

In a perfect competitive market the typical firm cannot affect the price of its output and so it maxmises profits or minimises losses when marginal cost is?

You might also like
Given a short run cost function as T C =1 /Q 3 (3 is under subscript ) - 2Q 2(2 is under subscript ) +60Q+100 , find the minimum value of AVC and MC?
Monopoly a. Show that if the market inverse demand function is P(Q), the profit maximizing monopoly will charge a price equal to , where MC is the firm’s marginal cost of production and is the price elasticity of market demand. b. Calculate the deadweight loss to monopoly when the demand function is given by Q=100-P and C(Q)=4Q.
What is meant by efficient or optimum factor combination in production? Explain with the help of isoquants and isocost lines how a producer achieves this combination of factors.
Identify and explain the three forms of shifting that can occur with tax incidence.
Consider the market for DVD movies , TV screens, and tickets at movie theaters , a, for each pair , identify whether they are complements or substitutes *DVDs and TV screens *DVDs and movie tickets *TV Screens and movie ticket
X Ltd has the following information relating to process production for period August 2012 Opening stock 500 units Degree of completion 60% Cost to date Kshs 2,800/= Cost incurred in August 2012 Kshs Direct material (2500 units introduced) 13,200 Direct labours 6,600 Production overhead 6,600 26’400 Closing stock 300 units: degree of completion 80% There was no loss in process Required Prepare the process account for august 2012
The demand equation for a company is P = 200 -3x And the cost function is C(x) = 75 + 80x - x2 a) Determine the value of x and the corresponding price that maximize the profit b) If the government imposes a tax on the company of R4 per unit quantity produced, determine the new price that maximizes the profit.
In the market for Fante Kenley, the supply and demand functions respectively are and When there is excess demand, price adjusts according to the equation a) Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply). b) Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable? c) If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10?