in a perfectly competitive market which of the following shifts in the supply

The firm's marginal revenue is equal to the price of $10 per unit of total product. īecause the price of the good is $10, the firm's total revenue is 10 × total product. These costs, along with the firm's total and marginal revenues and its profits for different levels of output, are reported in Table.

The firm's costs of production for different levels of output are the same as those considered in the numerical examples of the previous section, Theory of the Firm. The price of the good sold in this market is $10 per unit. Assume that this firm is competing with many other firms in a perfectly competitive market. In the short‐run, the amount of capital the firm uses is fixed at 1 unit. To illustrate the concept of profit maximization, consider again the example of the firm that produces a single good using only two inputs, labor and capital. Profits are therefore maximized when the firm chooses the level of output where its marginal revenue equals its marginal cost. When marginal revenue is below marginal cost, the firm is losing money, and consequently, it must reduce its output. When marginal revenue exceeds marginal cost, the firm can earn greater profits by increasing its output. A firm maximizes its profits by choosing to supply the level of output where its marginal revenue equals its marginal cost. Hence, in a perfectly competitive market, the firm's marginal revenue is just equal to the market price, P. If a firm in a perfectly competitive market increases its output by 1 unit, it increases its total revenue by P × 1 = P. If a firm decides to supply the amount Q of output and the price in the perfectly competitive market is P, the firm's total revenue is A firm's marginal revenue is the dollar amount by which its total revenue changes in response to a 1-unit change in the firm's output. The dollar amount that the firm earns from sales of its output. The firm's profits are the difference between its total revenues and total costs. The costs of production are determined by the technology the firm uses. Consumer demand determines the price at which a perfectly competitive firm may sell its output. In determining how much output to supply, the firm's objective is to maximize profits subject to two constraints: the consumers' demand for the firm's product and the firm's costs of production. Labor Demand and Supply in a Perfectly Competitive Market.Equilibrium in a Perfectly Competitive Market.Monopolistic Competition in the Long-run.Demand in a Perfectly Competitive Market.Classical and Keynesian Theories: Output, Employment.

In a perfectly competitive market which of the following shifts in the supply