Ask Question
BusinessBusiness
2 April, 13:22

if firms are competitive and profit maximizing, the price of a good equals the marginal cost of production. fixed cost of production. total cost of production. average total cost of production.

+1
Answers (1)
  1. 2 April, 16:15
    0
    Answer: Price of a good equals marginal cost of production for competitive and profit maximizing firms.

    Explanation:

    A perfectly competitive market has two main characteristics which are many buyers and sellers in the market and the goods are identical. Due to these conditions, actions of any single buyer or seller have a negligible effect on the market price. Every buyer and seller accept the price as determined by the market, hence, are known as price takers.

    The profit-maximizing output level is gotten when marginal revenue and marginal cost are equal. For a given price, the profit maximizing output level of the competitive firm is found when price intersects with the marginal cost curve.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “if firms are competitive and profit maximizing, the price of a good equals the marginal cost of production. fixed cost of production. total ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Hi-Tech, Inc., reports net income of $51.0 million. Included in that number are depreciation expense of $4.1 million and a loss on the sale of equipment of $1.9 million.
Answers (1)
Western Company is preparing a cash budget for June. The company has $10,000 cash at the beginning of June and anticipates $32,000 in cash receipts and $38,500 in cash disbursements during June.
Answers (1)
Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment.
Answers (1)
If your pharmacy department used the First-In First-Out (FIFO) inventory method at the beginning of your fiscal year, should the Chief Financial Officer use the Last-In First-Out (LIFO) inventory method at the end of the year? a. yesb. noc.
Answers (1)
On a mountain trek, you discover a 6-ounce gold nugget. a friend offers to pay $2,500 for it. how do you check whether this is a fair price?
Answers (1)
New Questions in Business
Which of the following types of value chain processes directly creates and delivers goods and services to customers? General management processes Postproduction processes Support processes Core processes
Answers (1)
Comanic Corp. has common stock of $5,400,000, retained earnings of $2,000,000, unrealized gains on trading securities of $100,000 and unrealized losses on available-for-sale securities of $200,000.
Answers (1)
Pirate Corporation acquired 85 percent of Ship Company's voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each.
Answers (1)
The term of an invoice of $2800 were 2/10, 1/30, n/60. The buyer sent a part payment of $980 within 10 days and the balance due 15 days later. How much cash discount could be taken?
Answers (1)
Baxter company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring, and finishing. when the sets are completely finished, out of which account should the cost be transferred?
Answers (1)
Home » Business » if firms are competitive and profit maximizing, the price of a good equals the marginal cost of production. fixed cost of production. total cost of production. average total cost of production.
Sign Up Forgot Password?