Perfectly Competitive Market
Not what you're looking for?
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.