Micro 3.7-Firm's in Competitive Market

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8 questions
0

What are the main characteristics of a competitive market?

1

What do firms in a PC maximize?

0

Draw MC, AVC and ATC making a + profit for a perfectly competitive firm. Show on your graph where the firm is making a + profit.

0

Under what conditions will the firm shut down?

0

Under what conditions will the firm exit the market?

0

Does a competitive firm's price equal its marginal cost in the short run, in the long run, or both? Explain.

1

Does the frim's price equal the minimum of its average total cost in the short run, in the long run, or both? Explain.

1

Are market supply curves more or less elastic in the long run?