Explain the three fundamental decisions that firms in perfectly competitive markets mustmake. Explain how these decisions are interrelated
What will be an ideal response?
Firms must decide how much to produce and supply in the output market, which technology to use, and how much of each input to demand. These three decisions are interrelated because the decision of how much to supply depends on costs of production, which in turn depends upon the technology used and the amount of inputs used. The use of inputs will depend on the amount of output produced.
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Refer to the scenario above. Earthland's financial account would report a balance of ________ for the year
A) $4 billion B) -$10 billion C) -$6 billion D) $14 billion
The willingness of consumers to buy a product at different prices is shown on a
A) demand curve. B) production possibilities frontier. C) supply curve. D) marginal cost curve.