EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 10, Problem 1DQ
To determine
Output determination under
Expert Solution & Answer
Explanation of Solution
A perfectly competitive firm can sell as much as it desires at the current market price. The profit maximizing output of a firm is fixed at the point where, MC = MR. The marginal revenue of a perfectly competitive firm is constant at each units of output while, the marginal costs increases as production increases. Therefore, the expansion of sale after when, the MC and MR (price) are equal would make loss.
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Chapter 10 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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