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Ken is a producer in a perfectly competitive market structure. Identify the point where he will set his price.

Ken is a producer in a perfectly competitive market structure. Identify the point-example-1
User Michael BW
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2 Answers

3 votes

Answer:

the first answer

Step-by-step explanation:

your welcome

User King King
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In a perfectly competitive market, the price of all units of all the goods of that industry will be the same, hence the MR is horizontal as you see. As we know MR is the demand curve and hence the price the producer charges, the producer will sell at MR=MC to maximize profits while at the same time being allocatively efficient. To answer the question as shown, move the bubble to the intersection of the MR and MC that is being touched by the Q line.
User Julealgon
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