Why a demand curve is also a curve of average revenue

Assignment Help Econometrics

Reference no: EM131403206

1. Explain why a demand curve is also a curve of average revenue. Recalling that when an average revenue curve is neither rising nor falling, marginal revenue must equal average revenue, explain why it is always true that P = MR = AR for the perfectly competitive firm.

2. Regarding the four attributes of perfect competition (many small firms, freedom of entry, standardized product, and perfect information):

a. Which is primarily responsible for the fact that the demand curve of a perfectly competitive firm is horizontal?

b. Which is primarily responsible for the firm's zero economic profits in long-run equilibrium?

Reference no: EM131403206

Questions Cloud

Would you place a personal deposit of one million dollars : Would you place a personal deposit of one million dollars or more in the publicly traded stock of this company? Would you invest $500,000 in the debt (bonds) of this company?

Estimate the cost of the energy lost : Assuming a two-wire line of 0.62-cm-diameter copper wire, estimate the cost of the energy lost to heat per hour per meter. Assume the cost of electricity is about 12 cents per kWh. The resistivity of copper is 1.68×10-8Ω⋅m.

Unconscious self esteem study : The researchers also fit the interaction model, E(y2) = β0 + β1x1 + β2x2 + β3x1x2. The t-test on the interaction term, β3, was ''significant'' with a p-value.

Efficiency of a subject on a treadmill : 1. What is the efficiency of a subject on a treadmill who puts out work at the rate of 105 W while consuming oxygen at the rate of 2.00 L/min?(Hint:If the oxygen consumption is 2.00 L/min,then the power input is 700 W.) _______________

Why a demand curve is also a curve of average revenue : Which is primarily responsible for the firm's zero economic profits in long-run equilibrium?

Angle of the submerged portion : A soda straw is struck into water at an angle of 36 degrees to the vertical. Looking straight down, what does the angle of the submerged portion of the straw to the vertical appear to be?

Calculate the viscosity of a fluid : Calculate the viscosity of a fluid that would allow a pressure drop of 35 kPa over a 5 mlength of 0.75-in. stainless steel sanitary pipe if the fluid is flowing at 0.12 m3/h and has adensity of 1010 kg/m3. Assume laminar flow.

Write the hypothesized equation of given model : The researchers fit an interaction model to the data. Write the hypothesized equation of this model.- In the words of the problem, explain what it means to say that ''x1 and x2 interact to effect y.'

What is the mirr of a project : What is the MIRR of a project if the initial costs are $2,078,000 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of 494,400 per year at the end of the year.

User Account

All Pages