Question
Questions for discussion: 1. What is the slope of the demand curve that a firm in a perfectly competitive (PC) market faces? 2. In the
Questions for discussion:
1. What is the slope of the demand curve that a firm in a perfectly competitive (PC) market faces?
2. In the short run, a firm would stay in business if its total revenue (TR) is greater than variable cost (VC), even if TR is smaller than VC+Fixed cost (FC). It means a firm would stay in business even when it suffers a loss (TR 3. In the long run, firms in PC markets make zero profit. Why do firms stay in business if they make no profit? How do firms' owners feed and house their kids if they have no profits?
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Microeconomics Theory And Applications With Calculus
Authors: Jeffrey M. Perloff
4th Edition
134167384, 134167381, 978-0134167381
