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When price (p), average revenue (ar), marginal revenue (mr), average cost (ac), and marginal cost (mc) are equal, a firm is in a state of long-run equilibrium in perfect competition. In this scenario, the firm earns normal profits, as total revenue equals total cost, and there is no incentive for firms to enter or exit the market. This equality indicates that firms are maximizing their profits while producing at the most efficient scale. Consequently, resources are allocated efficiently in the market.
What else can I help you with?
If marginal revenue is zero total revenue remains unchanged?
Yes. This is because when MR is at 0, TR is at is maximum. Generally firms produce at MR=MC, therefore if MR < 0, then MC > MR and firms will not produce at the this point. And so when MR = 0, this will be the total level of revenue achieved, and so total revenue remains unchanged
How many people were named James in the Bible?
There were 4 different James named in the bible.Father of the apostle Judas (not Judas Iscariot).-Lu 6:16; Ac 1:13.Son of Zebedee; brother of John and one of the 12 apostles of Jesus Christ. (Mt 10:2)Another apostle of Jesus Christ and son of Alphaeus. (Mt 10:2, 3; Mr 3:18; Lu 6:15; Ac 1:13)Son of Joseph and Mary, and half brother of Jesus. (Mr 6:3; Ga 1:19)
Where can you find Mr.?
You would find this in a list of abbreviations. Mr. is an abbreviation for Mister.
Are you a mr when your are over the age of 16?
This could be a trick question, lol but as long as you are a male and you are ready to use the title, yes sir , you are a mr =)
What was James son of Zebedee best known for?
James, along with his brother John served as one of Jesus 12 apostles. Together they were known as the "Sons of Thunder," possibly due to their zeal in fulfilling theocratic assignments. (Mr 3:17) James was privileged to be one of Jesus' close associates along with his brother and Peter. (Mt 17:1, 2; Lu 8:51; Mr 14:32-34) He was the first of the 12 apostles to die as a martyr. -Ac 12:1-3.
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
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.
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.
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.
