(Answered) 1 why is the equality of marginal revenue and marginal cost

Economics

1. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.

2. "Even if a firm is losing money, it may be better to stay in business in the short run." Is this statement ever true? Under what condition(s)? How does this relate to the "shut-down rule?"

3. Strictly speaking, perfect competition is relatively rare. Then why study it?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92210391
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Please pick a health care phenomenaproblem and use philip

Please pick a health care phenomena/problem and use Philip Jacobs's descriptive, explanatory and evaluative model (in studying Economics) to analyze it. (Please use the real statistics that you search online and cite the ...

Suppose that the forward rate f at 6 months between and

Suppose that the forward rate F at 6 months between $ and Euro is Euro = $1.2 The interest rate at six months in the Euro Area and in the USA is i Euro =3% i USA=2% What is the spot exchange rate? [x] a.Euro = $1.21 b.Eu ...

What does an increase in the savings rate do for a countrys

What does an increase in the savings rate do for a country's output? Why doesn't every country do that?

Looking for some guidance on estimating supply and demand

Looking for some guidance on estimating supply and demand curves. An sample practice problem lists: (demand and supply are in millions) Q(demand)=10-4P Q(supply)=-2+8P How do we plot something like this on a graph to fin ...

The market for truck hoods is perfectly competitive the

The market for truck hoods is perfectly competitive. The current equilibrium price is $500 and 80 units are sold per day. Suppose the own price elasticity of demand is -0.4 and the price elasticity of supply is 1.5, and ...

You sell bicycle theft insurance if bicycle owners do not

You sell bicycle theft insurance. If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?

Listen to or read the transcript of this podcast

Listen to (or read the transcript of) this podcast (https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-16-elasticity-of-demand) from the Federal Reserve Bank of St. Louis. describe your experien ...

In what kind of economy is a central planning board or

In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?

For a population with a mean equal tonbsp200nbspand a

For a population with a mean equal to 200 and a standard deviation equal to 25, calculate the standard error of the mean for the following sample sizes. ?a) 10 ?b) 30 c) 50 ?a) The standard error of the mean for a samp ...

Global poverty is an international issue other countries

Global poverty is an international issue. Other countries are inclined to look to the U.S. with its great wealth to take an active role in assisting poor nations. People here spend money trying to counter baldness while ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert