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Explain why the P equals MC rule is the same as the MR equals MC rule for perfectly competitive firms?
Perfectly competitive firms are price takers. This means that they can sell as much or as little as they want, but only at the going market price. When this happens, the market price is the same as their marginal revenue. Thus, P=MC is the same as P=MR.
Explain why it is sometimes difficult to apply the MR equals MC rule in actual business situations?
to savewv time
Why can price be substituted for marginal revenue in the MR equals MC rule?
It can be substituted because the industry would become purely competitive.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
A monopolist will not always produce on the inelastic portion of its demand curve?
(inelastic portion is when MR = negative figure) Yes , because the optimum point is when MR equals to MC and there is no hell a way when MC is negative. Other than this, when the price is at the upper proportion of monopoly demand curve, the price is always higher and the monopoly firm will earn supernormal profit. Any answer which is reasonable will be accept.
Joe's butcher shop is producing where MR equals MC Joe's Butcher Shop must be?
..in london
Explain why the P equals MC rule is the same as the MR equals MC rule for perfectly competitive firms?
Perfectly competitive firms are price takers. This means that they can sell as much or as little as they want, but only at the going market price. When this happens, the market price is the same as their marginal revenue. Thus, P=MC is the same as P=MR.
Explain why it is sometimes difficult to apply the MR equals MC rule in actual business situations?
to savewv time
What MC equals MC?
The correct formula is E = MC².
Why can price be substituted for marginal revenue in the MR equals MC rule?
It can be substituted because the industry would become purely competitive.
Marginal cost equals marginal revenue?
If the firm operates in a perfectly competitive industry, profit is maximised at the ouput level where mc=mr.
If E equals MC squared what does M equals?
M = mass
What demand curve indicates the firm incurs a loss?
It's when the MR is not equal to MC. The firm in this case is unable to produce output the equals marginal revenue to marginal cost.
Who developed the formula E equals mc squared?
Einstein developed the E = mc squared formula.
Who created e equals mc?
Albert Einstein.
Is e equals mc squared proven?
Yes.
Who is the physics teacher in Campbell College?
Mr Mc Kee
