Perfectly competitive markets respond to economic losses
Problem: How do perfectly competitive markets respond to economic losses for firms?
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Explain why a change in a firm's total fixed cost of production will shift its average total cost curve, but not its marginal cost curve.
1) Why does capital not appear in the production function? 2) Derive the short-run labor demand curve. (simply plug numbers in to approximate)
For a perfectly competitive firm, price equals marginal revenue because:
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