lectureAssignment11

lectureAssignment11 - ECONOMICS 100 Notes On Lecture...

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Unformatted text preview: ECONOMICS 100 Notes On Lecture Assignment #11 (Perfect Competition in the Short Run) Source: LR 11, Chapter 9, to page 216; LR10, Chapter 9, to page 217 1. All About Competition 1.1 What are the key assumptions that lie behind the model of perfect competition? 1.2 What does the assumption that a perfectly competitive firm is a price-taker imply about the relationship between marginal revenue (mr), average revenue (ar) and price (p)? 1.3 What does a perfectly competitive firms TR schedule look like? 1.4 How does the general profit-maximizing rule (for positive output) get applied in perfect competition (i.e. what is its form now)? 2. Example Fiasco is a perfectly competitive firm. Its Total Variable Cost (TVC) Schedule is given below. It has Total Fixed Costs (TFC) of $4 per day. Q (# per day) TVC ($) TC ($) ATC ($) AVC ($) MC ($) 4 1 9 13 13.0 9.0 9 2 13 17 8.5 6.5 4 3 18 22 7.3 6.0 5 4 24 28 7.0 6.0 6 5 31 35 7.0 6.2 7 6 38 42 7.0 6.3 8 7 47 51 7.3 6.7 9 8 57 61 7.6 7.1 10 9 68 72 8.08....
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lectureAssignment11 - ECONOMICS 100 Notes On Lecture...

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