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1- How does the price faced by a profit-maximizing competitive firm compare to its marginal cost? Explain.
2- When does a profit-maximizing competitive firm decide to shut down?
3- When does a profit-maximizing competitive firm decide to exit a market?
Ć¢ĀĀ¢ What factors would cause a firm to decide to buy intermediate products needed for production of its final goods or services? What are some of the benefits and disadvantages of deciding to make these products?
How does a perfectly competitive firm decide what price to charge?