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Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where [...]
Answer
the market sets the price.
Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where [...]
Answer
?
Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where [...]
Answer
the market sets the price.
If you want to change selection, open original toplevel document below and click on "Move attachment"
Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where the market sets the price.
Exhibit 5 graphically displays the revenue data from perfect competition. For an individual firm operating in a market setting of perfect competition, MR equals AR and both are equal to a price that stays the same across all levels of output. <span>Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where the market sets the price. In Exhibit 5, at a price of 100, P 1 = MR 1 = AR 1 = Demand 1 . Marginal revenue, average revenue, and the firm’s price remain constant until market demand and supply factors cause a
Parent (intermediate) annotation
Open itBecause price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where the market sets the price.
Original toplevel document
Exhibit 5. Total Revenue, Average Revenue, and Marginal Revenue under Perfect CompetitionExhibit 5 graphically displays the revenue data from perfect competition. For an individual firm operating in a market setting of perfect competition, MR equals AR and both are equal to a price that stays the same across all levels of output. <span>Because price is fixed to the individual seller, the firm’s demand curve is a horizontal line at the point where the market sets the price. In Exhibit 5, at a price of 100, P 1 = MR 1 = AR 1 = Demand 1 . Marginal revenue, average revenue, and the firm’s price remain constant until market demand and supply factors cause a
Summary
| status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
|---|---|---|---|---|---|---|---|
| repetition number in this series | 0 | memorised on | scheduled repetition | ||||
| scheduled repetition interval | last repetition or drill |
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