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Who are the experts?Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high.Answer:2 In perfect Competition the product of the single firm Correct option is the D :- Has many perfect substitutes produced by the other firms Because in perfect competition Large number of buyers and sellers ,Homogenous product is produced by evView the full answer
Transcribed image text: Question 2 (1 point) In perfect competition, the product of a single firm is sold under many differing brand names. O is sold to different customers at different prices. has many perfect complements produced by other firms. has many perfect substitutes produced by other firms. TC TR 500 400 Total revenue and total cost (dollars) 300 200 100 Quantity In the above figure, by increasing its output from Q1 to Q2, the firm increases its marginal revenue. decreases its profit. increases its profit. reduces its marginal revenue. Price (dollars per CD) 8.00 8.50 9.00 9.50 10.00 Quantity (CDs per week) 50 100 150 200 250 Quantity demanded (CDs per week) 30,000 25,000 20,000 15,000 10,000 Marginal cost (dollars per CD) 8.50 9.00 9.50 10.00 10.20 The first table shows the market demand schedule for CDs, and the second table shows the cost structure of each firm. The CD market is perfectly competitive and there are 100 identical firms. The market price of a CD is and CDs are produced and sold. $8.50; 24.000 $9.00: 20,000 $10.00; 10,000 $9.50; 15,000 In perfect competition, the price of the product is determined where the market average variable cost equals the market average total cost. fixed cost is zero. elasticity of supply equals the market elasticity of demand. O supply curve and market demand curve intersect. In a perfectly competitive market, the market supply curve is the sum of the average total cost curves of all the individual firms. average fixed cost curves of all the individual firms. supply curves of all the individual firms. average variable cost curves of all the individual firms. A perfectly competitive firm will have an economic profit of zero if, at its profit- maximizing output, its marginal revenue equals its average fixed cost. average variable cost. O marginal cost. average total cost.