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Q: When p equals ar equals mr equals ac equals mc?
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When MR equals MC?

yes it does !!


Why in monopoly AR equals MR?

look at the instructions


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


If a firm can maximize its profit by producing output where price is equal to its marginal cost in which type of market is the firm operating?

The firm is operating in Perfect markets. In perfect markets (Perfect competitions), the firm can maximize its profit when its MC is equal with its MR. And in perfect markets, usually the following condition is true: (MR = AR = P). So, in equilibrium which is also the profit maximizing point for a firm, the following condition is a must: MR = AR = P = MC.


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.


What are the differences between technical efficiency and economic efficiency?

•Technical efficiency. A firm (or industry) products at lowest point where AC crosses MC.•Allocativeefficiency. P = MC = MR. Satisfaction is represented by demand curve. DD = SS. Equilibrium.


WHY under perfect competition AR equals MR?

In a perfect competition, a firm can sell any amount of output at a given market price. It means firm's additional revenue(MR) from the sale of every additional unit of the commodity will be just equal to the market price (i.e. AR). Hence average revenue and marginal revenue become equal (AR=MR) and constant in that situation. Consequently the AR and MR curve will be same and would be horizontal or parallel to the x-axis.


Why average revanue is equal to marginal revanue in imperfect competiton?

Average Revenue (AR) is equals to Marginal Revenue (MR) in Perfect competition (PC) not imperfect competition. AR can be derived from the formula= Total revenue(TR) / Quantity. Since TR = Price x Quantity, the formula now will be Price x Quantity/ Quantity and naturally, AR equals to Price. Marginal Revenue can be measured by the formula= Change in total revenue/ Change in quantity (which is 1). Since the change in total revenue will be equals to the price of the product, MR in this case will be the Price of the product. From here we can see that Price = MR = AR = Demand.


Equation for marginal revenue and average revenue?

Marginal revenue (MR) is the incremental revenue for the last quantity sold, while average revenue (AR) is the mean revenue for all quantity sold. Mathematically: MR=dTR(Q)/dQ, e.i. MR is the first derivative of the total revenue function TR(Q) with respect to Q; while AR=TR(Q)/Q, e.i. is total revenue divided by Q. An interesting property of MR and AR is that when AR is falling, MR is less than AR; when AR is rising, MR is greater than AR. MR and AR intersect where dAR(Q)/dQ=0.