show profits in perfect competition through diagram
Answers
Answer:
show profits in perfect competition through diagram
Explanation:
The market price is set by the supply and demand of the industry (diagram on right)
This sets the market equilibrium price of P1.
Individual firms (on the left) are price takers. ...
A firm maximises profit at Q1 where MC = MR.
At this price firms make normal profits – because average revenue (AR) = average cost (AC)
Diagram of Perfect Competition
Diagram of Perfect CompetitionThe market price is set by the supply and demand of the industry (diagram on right)
Diagram of Perfect CompetitionThe market price is set by the supply and demand of the industry (diagram on right)This sets the market equilibrium price of P1.
Diagram of Perfect CompetitionThe market price is set by the supply and demand of the industry (diagram on right)This sets the market equilibrium price of P1.Individual firms (on the left) are price takers. ...
Diagram of Perfect CompetitionThe market price is set by the supply and demand of the industry (diagram on right)This sets the market equilibrium price of P1.Individual firms (on the left) are price takers. ...A firm maximises profit at Q1 where MC = MR.
Diagram of Perfect CompetitionThe market price is set by the supply and demand of the industry (diagram on right)This sets the market equilibrium price of P1.Individual firms (on the left) are price takers. ...A firm maximises profit at Q1 where MC = MR.At this price firms make normal profits – because average revenue (AR) = average cost (AC)
