Illustrate about perfectly competitive market firm, Macroeconomics

Assignment Help:

Why might a perfectly competitive market firm be willing to run at a loss in the short run?

The assumptions of a PCM firm should be outlined in order to end that the PCM firm is a price-taker - and cannot affect the market, either in terms of output or price. Using the unit cost picture, it should be made clear that ATC = AR is the breakeven level of output, and that the firm will incur losses if the price is below ATC. Though, as long as the firm is covering some of the fixed costs, it might be willing to stay in the market for the SR - as losses will be higher if it leaves the market as all set costs will remain.

 


Related Discussions:- Illustrate about perfectly competitive market firm

Multiplier concept, Ask question difference between static multiplier and d...

Ask question difference between static multiplier and dyanamic multiplier

Economics, what is a limitation of nation income

what is a limitation of nation income

Private sector in the circular flow, Private sector in the circular flow ...

Private sector in the circular flow The private sector total income is known as the national income. Because private sector receives the entire return from the factors of pr

Post-keynesian macroeconomics -rational expectations school, Rational Expec...

Rational Expectations School Expectations on the future values of economic variables play an important role in macroeconomic analysis and economic analysis in general. Because

Homework 5, Instructions For the following 10 questions, consider an eco...

Instructions For the following 10 questions, consider an economy which is initially in equilibrium without a tax, with P* of $90 and Q* of 10. Later, a tax is put on the market

Explain about household savings, Q. Explain about Household savings? Re...

Q. Explain about Household savings? Remember that consumption may refer to observed consumption as well as to demand for consumption. The same is true for 'household savings',

Heckscher-ohlin theory, Suppose Nigeria has 20 million workers and 16 milli...

Suppose Nigeria has 20 million workers and 16 million units of capital, while Botswana has 5 million workers and 3.5 million units of capital. Which of the following statements is

What are the international economic crisis, What are the international econ...

What are the international economic crisis A current account surplus can only take place in one nation if there is a current account shortage in another country. So it makes no

Classical and non-classical model, what is the difference between classical...

what is the difference between classical and non-classical model

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd