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lutik1710 [3]
3 years ago
8

Why does demand equal marginal revenue for perfectly competitive firms

Mathematics
1 answer:
shepuryov [24]3 years ago
6 0
Specifically, price only equals marginal revenue in perfect competition. Price equals MR in perfect competition because your demand curve is horizontal. No matter how much you produce, it always sells at the same price. In other market structures, you can raise or lower prices.
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A billboard designer has decided that a sign should have 4-ft margins at the top and bottom and 1-ft margins on the left and rig
givi [52]

An equation is formed of two equal expressions. The value of x that maximizes the area of the printed region of the billboard is 9.655 ft.

<h3>What is an equation?</h3>

An equation is formed when two equal expressions are equated together with the help of an equal sign '='.

Given x is the left-right width of the billboard and y is the height of the billboard. Therefore,

The total area of the billboard, A= x·y

The total printed area of the billboard, A_p=(x-2)(y-8)

Given in problem that the area of the billboard is 3600 ft².

x·y = 3600

y = (3600)/x

Substituting the value of y in the equation of the total printed area of the billboard,

A_p = (x-2)(\dfrac{3600}{x}-8)\\\\A_p = 3600 -8x -\dfrac{7200}{x} + 16\\\\A_p =3616-8x - \dfrac{7200}{x}

Now, the value of x is needed to be minimum, therefore, differentiating the given function,

\dfrac{d}{dx}A_p =\dfrac{d}{dx}3616-8x - \dfrac{7200}{x}\\\\\dfrac{d}{dx}A_p =-8 - \dfrac{7200}{x^2}

Equate the differentiated function with 0,

0=-8x - \dfrac{7200}{x^2}\\\\8x = - \dfrac{7200}{x^2}\\\\x^3 = 900\\\\x = 9.655 ft.

Hence, the value of x that maximizes the area of the printed region of the billboard is 9.655 ft.

Learn more about Equation:

brainly.com/question/2263981

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