Perfect competition is sometimes described as the ideal, Ask an Expert

Economics

Perfect competition is sometimes described as the ideal market structure.

a) Why does P=MR=MC=AR=D for a perfectly competitive firm?

b) When a perfectly competitive firm is maximizing profits in the short run, the profit-maximizing quantity occurs at the minimum of the average total cost. Do you agree? Explain and show graphically.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92199026

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