Competitive firm, Microeconomics

Assignment Help:

The Competitive Firm

- Price taker

- Market output (Q) and firm output (q)

- Market demand (D) and firm demand (d)

- R(q) is straight line
Demand and Marginal Revenue Faced by Competitive Firm

1594_competitive firm.png

- The competitive firm's demand

  • Individual producer sells all the units for $4 regardless of producer's level of output.
  • If producer tries to raise the price, sales are zero.
  • If producers try to lower the price he cannot increase sales
  • P = D = MR = AR

- Profit Maximization

  • MC (q) = MR = P

Related Discussions:- Competitive firm

Economic problems, economic problems are faced by all types of economies bu...

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

Marginal revenue productivity theory, Question 1: i) Derive and explain...

Question 1: i) Derive and explain Harberger's (1954) welfare loss estimates of monopolizing a perfectly competitive firm. ii) What are the roles of advertising? Can it lead

Steps of the basic analytical framework in modern economics, What are the s...

What are the steps of the basic analytical framework in Modern Economics? Framework is very significant to master this fundamental analytical framework, particularly, these fiv

Explain the price inflation and wage inflation, What is the difference betw...

What is the difference between Price inflation and Wage Inflation?  Price inflation is the rate of enhance in the prices of goods and services whereas the wage inflation is ra

What functions include of money, The functions of money include; (1)  mediu...

The functions of money include; (1)  medium of exchange,  (2)  store of value, and (3)  a calculate of worth.  Due to money is acceptable as a form of payment for all commodities,

Exceptional demand, how to differentiate the exeptional demand and excepti...

how to differentiate the exeptional demand and exceptional supply?

International trade, compare and contrast adam smith''s theory of absolute ...

compare and contrast adam smith''s theory of absolute advantage theory and david ricardo''s comparative advantage theory of international trade.

Determine the nominal reservation wage, Mikes' preferences for consumption ...

Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) =  ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200

Cholesterol within acceptable limits, The recent flooding in the upper Midw...

The recent flooding in the upper Midwest destroyed a important proportion of the corn crop.  Though, it has been discovered that corn oil is far better in keeping cholesterol withi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd