<p>can someone explain question 9 and 26?
thanks so much!</p>
<p>Number 9 is simple. A firm will produce at the point at which MC = MR (with an upward adjustment to meet the demand line). Since the firm is perfectly competitive, the demand line is equal to the marginal revenue line.</p>
<p>Number 26 is hard to explain. The firm won’t be producing at MC = MR anymore, so their profits will decline. That’s the best explanation I can give.</p>
<p>26: Perfect competition. If MC > Demand, and Demand = Price that a firm is selling at, then clearly, profits will decrease. C.</p>
<p>9: P = MC is where a perfectly competitive firm (and for that matter, the industry) will sell at. Output will change to fit this rule. D</p>
<p>thx guys.
im sorry i dont really understand 9 (never taken ap micro)
can you explain why Demand = Marginal Revenue (besides the point that the demand line is horizontal).
can you also illustrate this concept that demand = marginal revenue in a competetive industry with some examples?? (numbers, graphs, ect)?</p>