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The firm is perfectly competitive is evident from its a)increasing marginal cost b)increasing total cost c)zero economic profits d)constant marginal revenue e)absence of marginal values at Q=0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The firm is perfectly competitive is evident from its a)increasing marginal cost b)increasing total cost c)zero economic profits d)constant marginal revenue e)absence of marginal values at Q=0. Using the table below

Q
0
1
2
3
4
5
6
P
$30
$30
$30
$30
$30
$30
$30
TR
$0
$30
$60
$90
$120
$150
$180
MR
111
$30
$30
$30
$30
$30
$30
TC
$15
$25
$40
$60
$85
$115
$150
MC
111
$10
$15
$20
$25
$30
$35

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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