Discuss the conditions that characterize pure competition a
Discuss the conditions that characterize pure competition (a price taker market) and explain how and why price takers maximize profits at the quantity for which marginal cost, price, and marginal revenue are equal.
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A fan is to be selected to ventilate a bathroom whose dimensions are 2 m x 3 m x 3 m. The air velocity is not to exceed 8 m/s to minimize vibration and noise. The combined efficiency of the fan-motor unit to be used can be taken to be 50 percent.
Explain the decision by price takers to continue to operate, temporarily shut down, or go out of business, when faced with price below average total cost.
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