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blackwolf742Lv1
28 Sep 2019
1. Strictly speaking, pure competition never has existed andprobably never will. Then why study it?
2. Why is the equality of marginal revenue and marginal costessential for profit maximization in all market structures? Explainyour reasoning.
3. Suppose that purely competitive firms producing cashews discoverthat price exceeds marginal cost. Will their combined output ofcashews be too little, too much, or just right to achieveallocative efficiency? In the long run, what will happen to thesupply of cashews and the price of cashews?
1. Strictly speaking, pure competition never has existed andprobably never will. Then why study it?
2. Why is the equality of marginal revenue and marginal costessential for profit maximization in all market structures? Explainyour reasoning.
3. Suppose that purely competitive firms producing cashews discoverthat price exceeds marginal cost. Will their combined output ofcashews be too little, too much, or just right to achieveallocative efficiency? In the long run, what will happen to thesupply of cashews and the price of cashews?
2. Why is the equality of marginal revenue and marginal costessential for profit maximization in all market structures? Explainyour reasoning.
3. Suppose that purely competitive firms producing cashews discoverthat price exceeds marginal cost. Will their combined output ofcashews be too little, too much, or just right to achieveallocative efficiency? In the long run, what will happen to thesupply of cashews and the price of cashews?
manhokwe tawandaLv10
29 Sep 2019
