Suppose a firms output is small relative to the size of its market. Explain why this means

Question:

Suppose a firm’s output is small relative to the size of its market. Explain why this means the firm’s marginal revenue will be equal to the market price.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

See More Books

Question Posted: Sep 21, 2024 06:02 AM

See More Questions

A teacher has just given an algebra exam. What are some of the statistics she could compute?
Lory Company has a total debt to total assets ratio of 45% and a current ratio of 4.1. The firm's stock sells for $ 71.0 per share. The total market value of the equity is $ 43.6 million. The...
Standard costs facilitate management planning. What are the other advantages of standard costs?
Suppose a firms output is small relative to the size of its market. Explain why this means the firms marginal revenue will be equal to the market price.
Sobrero Corporation, a Mexican affiliate of a major U.S.-based hotel chain, starts the calendar year with 1 billion pesos (P) cash equity investment. It immediately acquires a refurbished hotel in...
please provide a detailed written analysis for each image I provided with comparing both of them i.e a financial statement analysis thanks Analytical Measures Gross Profit Margin Penske Autonation...
Suppose that the manager of a donut shop tells you that he sold 220 donuts today, for a total revenue of $220 and average revenue of $0.90. Whats wrong with this story?
The manager of the donut shop tells you that he sells donuts for $1 each, and that if he were to make additional donuts, based on his current level of output, it would cost him $0.80 per donut. Do...
Some websites are not very useful, functional, or well organized. Why do you believe that websites are approached differently than other software development initiatives? What did Wells Fargo do...
Saved On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. building was completed on September 30, 2025. Expenditures on the...
Comet Halley is an irregularly-shaped comet which is visible from Earth every 75-76 years. For the purposes of this question, we will assume that the comet is spherical. a) Taking the diameter of the...
Xerox 2300 Copier The DESKTOP XEROX 2300 copier is a versatile model that delivers the first copy in six seconds. It is also the lowest-priced newest Xerox copier available. The 2300 is designed as a...
Answer atleast 2-3 categories. ACTIVITY 1. TRENDS AND FADS Instructions: Fill in the chart with a trend and a fad that you've known over the years. For the trends, be able to discuss its rise,...
1. Which of the following formulas can be considered an algorithm for computing the area of a triangle whose side lengths are given positive numbers a, b, and c? Explain these. a. Sp(p-a)(p - b)(pc),...
Prove that the centroidal polar moment of inertia of a given area A cannot be smaller than A2/2.
What is the purpose of the journal wizard?
What is the diamonds-water paradox, and how is it explained? Use the same reasoning to explain why bottled water costs so much more than tap water.
The height of the demand curve at a given quantity reflects the marginal valuation of the last unit of that good consumed. For a normal good, an increase in income shifts the demand curve to the...
Suppose supply of a good is perfectly elastic at a price of $5. The market demand curve for this good is linear, with zero quantity demanded at a price of $25. Given that the slope of this linear...
Gender stereotyping refers to: overgeneralizing about the attitudes, traits, or behaviors of only men. overgeneralizing about only the acceptable behaviors of men and women. O overgeneralizing about...
While GDP is a common measurement of standard of living, it isn't perfect, and it doesn't measure a lot of aspects of life that people consider important. In your view, what are the top five criteria...
Waterway Company had the following department information for the month: Total materials costs $ 59000 Equivalent units of producion - materials 5000 Total conversion costs $92000 Equivalent units of...

Suppose a firms output is small relative to the size of its market. Explain why this means

Question:

Step by Step Answer:

If a firmsoutput is small relative to the size o...View the full answer

Microeconomics

Students also viewed these Economics questions