Why does a perfectly competitive firm maximize revenues

Reference no: EM13691094

Why does a perfectly competitive firm maximize revenues where P=MC? Why is P=MR in this market type? Name a business you think belongs in this category. Why? Be sure you think about all of the assumptions about firms in this industry

Reference no: EM13691094

Questions Cloud

Rate of return on a lie subscription purchased for an infant : A popular magazine offers a lifetime subscription for $1000. Such a subscription may be a given as a gift to an infant at birth (the parents can read it in those early years), or taken out by an individual for himself.

Expected to generate annual revenue : An investment of $18,000 is expected to generate annual revenue of $8,000 throughout life of the investment. The risk is based the life of the investment. The estimate of probabilities for the duration of the investment is given in the table below.

International financial markets : How is the forward value date calculated on a 90-day forward contract? Empirical tests suggest that UIP does not hold. How would you exploit the failure of UIP? Describe in detail the investment strategy that you would use?

Why does a perfectly competitive firm maximize revenues : Why does a perfectly competitive firm maximize revenues where P=MC? Why is P=MR in this market type? Name a business you think belongs in this category. Why? Be sure you think about all of the assumptions about firms in this industry

How will the quantity demanded of bus rides change : would an increase in price of a bus ride increase or decrease total revenue? why? if the price of gas increased b 10%(holding the demand for gas constant) how will the quantity demanded of bus rides change (direction and %)?

Make a choice between fighting two evils : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Steady-state value of the capital-labor ratio : A country has the per-worker production function yt = 5k^{^{.5}}t , where yt is output per worker and k t is the capital-labor ratio. The depreciation rate is 0.2 and the population growth rate is 0.05. The saving function is St = 0.2Yt , where St is..

User Account

All Pages