The correct answer is D.
Perfect competitive firms are price-takers, operate in markets with many other competitors, manufacture homogenous products with perfect substitutives provided in the same market, and operate in markets with free entry and exit (no barriers). These features generate a perfectly elastic demand function, an hortizontal line for a certain price level, as the firm has to assume the existing price in the market.
Marginal cost and marginal revenue are compared in order to decide which is the optimal amount of production to maximize the firm's profits. This happens in the scenario in which marginal revenue equals marginal costs.
Marginal revenue (MR) is the amount earned for selling an extra unit, which in the perfect competition scenario equals the market price of the product. The marginal cost (MC) is the cost of producing on extra unit of output.
- When MC>MR, of course producing one more unit is unprofitable and therefore, unoptimal.
- When MC<MR the extra unit is profitable, then the firm should increase the production until reaching MC=MR, that is the point at which they should not move anymore.
Answer:
The 1930s Depression is profoundly and deeply associated, in the popular mind, with the prairie.
Explanation:
D. Human population increased significantly in a short period of time
Gorilla warfare, the south knew the land better than the north and attacked when the north were lost within the new environment.
The research demonstrated that <span>individuals improve most mental abilities during adulthood and then experience a gradual decline.
After people surpassing the mid-age, regeneration of the brain cells will also start to decline, which resulted in the impairment of cognitive ability that played a crucial role in our analytic ability.</span>
