For a perfectly competitive firm, the a.demand curve is the same as the marginal cost curve....

For a perfectly competitive firm, the

a.demand curve is the same as the marginal cost curve.

b.demand curve is the same as the marginal revenue curve.

c.demand curve lies above the marginal revenue curve.

d.demand curve is downward-sloping.

e.none of the above

Solutions

Expert Solution

The answer is it is as the marginal revenue curve.

For a perfectly competitive firm, the demand curve is a straight horizontal line, means an equal price is offered at all quantities to all the buyers. It also has a perfect elasticity i.e. if the price changes even a little bit, the quantity demanded is reduced to zero, making it perfectly elastic.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Why is the marginal revenue curve for a perfectly competitive firm the same as its demand...

Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

The short-run supply curve for a perfectly competitive firm is its A. marginal cost curve above...

The short-run supply curve for a perfectly competitive firm is its A. marginal cost curve above the average variable cost curve. B. marginal cost curve above the average fixed cost curve. C. average variable cost curve above the marginal cost curve. D. average variable cost curve above the average total cost curve. E. average variable cost curve above the average fixed cost curve.

The demand curve facing a perfectly competitive firm is: a) the same as the market demand...

The demand curve facing a perfectly competitive firm is: a) the same as the market demand curve b) downward-sloping and less flat than the market demand curve c) downward-sloping and more flat than the market demand curve d) perfectly horizontal e) perfectly vertical The supply curve for a competitive firm is: a) its entire MC curve b) the upward-sloping portion of its MC curve c) its MC curve above the minimum point of the AVC curve d) its MC curve...

A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: Select...

A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: Select one: a. total revenue curve. b. short-run supply curve. c. input demand curve. d. marginal revenue curve.

The short-run supply curve for a firm in a perfectly competitive industry is: The short-run marginal...

The short-run supply curve for a firm in a perfectly competitive industry is: The short-run marginal cost curve that is above minimum average variable cost (which takes into account the fact that the firm should shut down if price falls below average variable cost). The entire average variable cost. The entire short-run marginal cost curve. The entire average total cost curve. Which of the following statements is true regarding short-run and long-run costs? (Assume all cost curves have typical shapes,...

The graph shows the marginal cost and average total cost curves for a perfectly competitive firm....

The graph shows the marginal cost and average total cost curves for a perfectly competitive firm. The horizontal axis measures output in thousands of units per year, from 0 to 50, increasing by 10. The vertical axis measures the revenue and cost in dollars per unit, from 0 to $25, increasing by $5. The graph shows two U-shaped curves, labeled MC and ATC. The minimum point of the ATC curve corresponds to an output of 30 and a cost of...

8) For a perfectly competitive firm, marginal revenue is

8) For a perfectly competitive firm, marginal revenue isA) equal to the price.B) less than the price.C) undefined because the firm's demand curve is horizontal.D) greater than the price.and10) A perfectly competitive firm will maximize profit when the quantity produced is such that theA) firm's marginal revenue is equal to its marginal cost.B) price exceeds the firm's marginal cost by as much as possible.C) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.D) firm's total revenue is...

A perfectly competitive firm's short-run supply curve is: A. its marginal cost curve above the AVC...

A perfectly competitive firm's short-run supply curve is: A. its marginal cost curve above the AVC curve B. its marginal cost curve below the marginal revenue curve C. horizontal at the market price D. its total cost curve above the AVC E. its marginal revenue curve below the ATC curve

The demand curve for an individual perfectly competitive firm:

MicroEcon 7&822.The demand curve for an individual perfectly competitive firm:A)is a downward sloping demand curve.B)is perfectly elastic.C)is perfectly inelastic.D)is equal to the firms average variable cost curve.23.In a perfectly competitive market, individual firms set:A)prices and quantities.B)neither prices nor quantities.C)quantities but not prices.D)prices but not quantities.24.Which industry best illustrates a perfectly competitive market?A)automobile industryB)soft drink industryC)public utility25.Profit maximizing firms will always operate where:A)MC = MR.B)MC > MR.C)MC < MR.D)It will vary from firm to firm.26.When a firm experiences economies of scale:A)average...

The demand curve of a perfectly competitive market is horizontal and equal to marginal revenue curve....

The demand curve of a perfectly competitive market is horizontal and equal to marginal revenue curve. However, the demand curve of a monopoly slopes downward with marginal revenue curve below the demand curve. Discuss the difference in the shape of the demand curve in both markets Discus why the MR curve of the monopoly is below it demand curve while the competitive market is equal to AR Discuss the assertion “Monopolist are price-giver while perfectly competitive market is a price-...

Subjects