In a competitive market, there are many buyers and sellers. The goods offered are identical, and firms can freely enter or exit the market. Buyers and sellers are both price takers. The amount of output produced determines the revenue of a firm. First, do the simulation game Production, Entry, and Exit. (RESULTS DISPLAYED BELOW)

QUESTIONS:

1. Based on what you learned from the simulation, what factors determine your entry and exit into a market if you own your own business?

2. Applying the concept of marginal costs. As a business owner, how would you decide how much to produce?

3. How does the impact of fixed costs change production decisions in the short and long run?

Initial Post: "Timeliness Develops an initial post that and Image File includes an image oi the simulation report by the indicated time Initial Post: Entry and Identifies factors that impact Exit Factors decisions to enter or exit a market Initial Post: Marginal Applies the concept of Costs marginal costs and explains how a business owner would decide how much to produce Initial Post: Fixed Explains the impact of fixed Costs costs on production decisions in the short run and in the long run by referring to the average total-cost [ATQ model Response Posts Responds to at least two peers with examples from the news of firms in perfectly competitive markets. and discusses how costs impact these firms' protabilityI Articulation of Clearly conveys meaning with Response correct grammar. sentence structure. and spelling. demonstrating an understanding of audience and purpose Citations and Uses citations for ideas Attributions requiring attribution. with consistent minor errors \fHistory Round 1 2 3 4 5 Drive Today? Yes Yes No Yes Yes Drivers 5 5 6 6 3 Revenue per Hour $18 $18 $16 $16 $25 Your Hours 8 8 N/A 8 9 Profit $16 $16 0 $0 $80