Competitive firm, Microeconomics

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
Posted Date: 10/12/2012 5:20:49 AM | Location : United States







Related Discussions:- Competitive firm, Assignment Help, Ask Question on Competitive firm, Get Answer, Expert's Help, Competitive firm Discussions

Write discussion on Competitive firm
Your posts are moderated
Related Questions
Effect of Gasoline Tax with Rebate Assume -Income = $9,000 - Price of gasoline = $1

Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs

Program Spending: Government spending that is undertaken to provide useful public programs. Program spending includes both transfer payments which are intended to supplement the in

List four characteristics of monopolistic competition

Problem: i) Differentiate between economic development and economic growth. ii) Describe carefully how, using the expenditure approach, national income is calculated. ii

EXCHANGE RATE SYSTEM: It is interesting to look at a case study of a country like India for several reasons: first it is a small country in terms of imports and exports as a p

Find the market-clearing price and quantity of burritos.

The definition of a price maker is states as “firm with some power to set the price bcoz the demand curve for its output slopes downward”, that in effect, mean those firms with a d

Amartya Sen''s concept of poverty and welfare.

How does the approach of someone who has adopted the precautionary principle differ from someone with a blind faith in substitutability, when it comes to a non-renewable resource l