DU Business Perfectly Competitive Firms Profit Maximization Discussion

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Ndhvmm

Business Finance

Duke University

Question Description

Help me study for my Business class. I’m stuck and don’t understand.

Respond to the following:

Compare the short run and long run for perfectly competitive firms. How do perfectly competitive firms adapt to market changes in the short run? What can perfectly competitive firms expect in the long run in terms of profits?

 

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Explanation & Answer

Attached.

Running head: PERFECTLY COMPETITIVE FIRMS

Perfectly competitive firms
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PERFECTLY COMPETITIVE FIRMS

2

Profit maximization for perfectly competitive firms occurs when the marginal cost equals
the marginal revenue. In the short run, for perfectly competitive fir...

vnzzhyjn (4273)
Cornell University

Anonymous
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