Econ 1011 - Lecture 13

Seetable 1 forapcfirmmrp 2

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Unformatted text preview: curves,
etc.
 e. Free
and
costless
entry
and
exit
from
the
industry
in
response
to
 profits
 
 4) The
Firm
decision
 a. How
to
determine
what
price
to
charge
and
how
much
output
to
 produce
 i. Price:
determined
for
a
PC
firm
–
each
firm
is
too
small
to
affect
 the
price
 1. If
firm
decides
to
under
price
the
market
then
it
can
sell
 an
unlimited
amount
but
will
lose
money
 2. If
it
decides
to
over
price
then
no
one
will
buy
since
they
 will
prefer
the
cheaper
substitutes
 ii. Output:
Choose
o...
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