If a firm in a perfectly competitive industry is producing at a quantity with a marginal cost of...
Question:
If a firm in a perfectly competitive industry is producing at a quantity with a marginal cost of $23, and maximizing profits, what is the good's selling price?
Perfect Competition:
In a perfectly competitive industry, each firm is a market price-taker. This means that each firm does not have an influence or control over the prevailing market price. They take it as given. As a result, the marginal revenue of a firm in a perfectly competitive industry is equal to the prevailing market price.
Answer and Explanation: 1
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marginal cost: {eq}MC = $23 {/eq}
In this problem, our goal is to determine the market price of the good. Note that for any...
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