econ- perfect competition supply shift and marginal cost

Is the average total cost, that is your marginal revenue, and so you are going to And the way that we can see that is at this quantity, this And as we've talked about in other videos, at that quantity, they're going So for this firm at thisĬurrent state of affairs, it would be rational for them to produce this quantity right over there. Higher than the marginal cost up to including when the marginal revenue is equal to the marginal cost. Quantity to produce, but it would be rationalįor them to keep producing while the marginal revenue is So they're not going to set the price, but they can choose what Price right over here, marked with this a dotted line, and as we've talkedĪbout in multiple videos, the firms in that perfectlyĬompetitive market, the perfectly competitive firms, they just have to price takers, so the market price is going to be their marginal revenue curve.

Multiple times already, is our supply and our demand curves for our perfectly competitive market, and you can see the equilibrium So what we have on the left-hand side, and we've seen this Perfectly competitive markets in the long run.

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Econ- perfect competition supply shift and marginal cost