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- Why is marginal revenue for a firm in perfect competition equal to the market price?A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal cost. True or False?draw a short run firm and industry competitive equilibriums for a perfectly competitive gator-farming industry before the number of alligator farms in florida doubled. for simplicity, assume that the gator farm is earning zero economic profit. now show the short run effect of an increase in demand for alligators.
- Why does a purely competitive firm not charge price above the market price?What is the short-run Shutdown condition for a perfectly competitive firm? P>AVCminimum P<AVCminimum P>ATCminimum P<ATCminimumPerfect Competition; How can the demand curve facing the firm be horizontal if the markket demand curve is downward- sloping?
- The demand curve faced by a single firm in a perfectly competifive market is__In the short run, if a perfectly competitive firm chooses to produce, then its profits are maximized by producing the quantity of output where marginal cost equals marginal revenue. True FalseRambutan is a fruit prized in Eastern Asia for its unique hairy look. Once peeled, it reveals a sweet, slightly sour, grape-like, gummy-tasting fruit. The graph shows the average total cost, marginal revenue, and marginal cost curves of a perfectly or (purely) competitive rambutan farmer. This firm is incurring a firms will this market. In the long run, What is this firm's profit or loss, rounded to the nearest penny? If the market price fell to $9.51, the firm would Price per bushel $12.11 10.11 9.51 MR C 5.4 A MC B ATC 7 Quantity (bushels)