Which of the following best represents the demand, marginal revenue, and corts curves for a single firm In this market?

Clowere 1 motmrs
(2)
(6)
(3)

Question

Which of the following best represents the demand, marginal revenue, and corts curves for a single firm In this market?

Clowere 1 motmrs
(2)
(6)
(3)

Accepted Answer

∻Solution∻ ‖ a ⋮ Interpretation of Graphs: The images provided seem to represent various cost curves and revenue curves for a firm in a perfectly competitive market. ‖ ‖ b ⋮ Identifying the Correct Graph: In a perfectly competitive market, a single firm's demand curve (D) is perfectly elastic, which means it is a horizontal line at the market price level. Marginal revenue (MR) is equal to the demand curve for a perfectly competitive firm, so MR is also a horizontal line at the same level. The cost curves, which include average total cost (ATC), marginal cost (MC), and average variable cost (AVC), are typically U-shaped. ‖ ‖ c ⋮ Correct Graph Selection: Based on the descriptions provided by the OCR model, the graph that best represents the demand, marginal revenue, and cost curves for a single firm in this market would be the one with the horizontal demand and marginal revenue lines (D = MR) and the U-shaped cost curves (ATC, MC, AVC). ‖ ∻Answer∻ ⚹ The graph that best represents the demand, marginal revenue, and cost curves for a single firm in a perfectly competitive market is the one with the horizontal D = MR line and the U-shaped ATC, MC, and AVC curves. ⚹ ∻Key Concept∻ ⚹ Perfectly Competitive Firm's Demand and Revenue Curves ⚹ ∻Explanation∻ ⚹ In a perfectly competitive market, a firm's demand and marginal revenue curves are horizontal at the market price, reflecting the firm's price-taking behavior.◊How do changes in demand and costs affect the pricing decisions of a single firm in a market? Please let me know if you need any further assistance.⍭ Generate me a similar question◊⚹

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