Questions tagged [firm]
The firm tag has no usage guidance.
2
questions
1
vote
1answer
476 views
market equilibrium quantity $\ne$ firm profit maximising quantity?
Consider a perfectly competitive market with equilibrium price $P_{eq}$ and quantity $Q_{eq}$ and firm with profit maximising quantity $Q_f$ as illustrated below:
I guess any firm in the market would ...
1
vote
1answer
1k views
Optimal production level for a typical firm in long-run
Assuming all firms have identical cost functions. Now suppose there is an increasing shift in the demand curve. As we all know that for increasing costs case, both average costs (AC) and marginal ...
