Purchase Solution

Perfectly Competitive Market

Not what you're looking for?

Ask Custom Question

I'm looking for help on how to answer the attached questions, based on the graph in said attachment. I'm having trouble deciphering the graph in order to answer the questions. Can you please help?

Purchase this Solution

Solution Summary

This solution gives you a detailed discussion on Perfectly Competitive Market

Solution Preview

a. The level of this firm should produce at is the level at which the marginal cost equals marginal revenue. In other words the output is should produce is 7.
b. The firm is a price taker, remember it is perfect competition. The price given to the firm is $28.
c. The firm's average total cost at this level is $32 so the total cost is 7X $32 = $224.
d. The firm's average variable cost at ...

Purchase this Solution


Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.