Why is the intersection of the marginal cost and marginal benefit curves of a perfectly competit

First, the marginal cost.

The overlap with supply must be achieved in a perfectly competitive market environment, and he reflects only the supply of manufacturers and not the industry.

Because perfectly competitive manufacturers are the recipients of market **, their maximum profit condition mr=mc can be simplified to p=mc, that is, in the determined p, the manufacturer can determine the optimal output q, so that mc(q) to cater to the market **p and achieve the maximum profit. And the supply curve.

Isn't the meaning exactly the trajectory of the manufacturer's willingness and ability to provide production at a certain level?

Again, marginal gains.

Coincident with the demand curve not only requires the market to be perfectly competitive, but also the demand curve refers specifically to the manufacturer rather than the market. Since the market is perfectly competitive.

Next, the manufacturer is the recipient of **, then the demand curve he faces is a horizontal, and the height is the demand curve of the fixed **p. The meaning of marginal return mr is the derivative of the total return tr on the output q, and tr=p*q, natural mr is equal to the constant p, that is, it coincides with the demand curve, in addition, the average return curve ar=tr q also coincides with the above two curves (it should be obvious).

Finally, it is pointed out that under perfect competition, the supply curve of the industry is obtained by adding up the output of all manufacturers at the same level. As you can imagine, this supply curve is much flatter than that of a single manufacturer. The demand curve of the industry is no longer horizontal, but inclined to the right as usual, at the supply and demand equilibrium point of the industry, the determination of a **p is what each manufacturer must accept**, that is, they will face a horizontal demand curve with a height of p, and then manufacturers will produce according to their own mc=p.

Because there is no such thing as excess profit in a perfectly competitive market.

The biggest word of profit is marginal cost = marginal benefit, so in this market, profit is fixed.

In a perfectly competitive market, manufacturers are the recipients of the market, because the competition is too fierce, manufacturers have to accept the market unconditionally, so the definition of marginal returns: the benefits obtained by each additional unit of output; The marginal gain of a company in a competitive market is the ** of the items it sells, that is, the market**!

In perfect competition, because the manufacturer is the recipient of the product, that is to say, the amount of the product that can be determined by his own will is not changed by his own will, but is determined by the total market demand and total supply of the product. Therefore, the marginal return curve of the manufacturer is a horizontal line, which coincides with the ** line.

In any market, marginal benefit = marginal cost is the optimal choice, and marginally equal equilibrium is the basic principle in economics.

Hahahaha The teacher didn't speak well?

Yes, the cost here is not an accounting cost, it is an "opportunity cost" in economics, not an "accounting cost".

For example, if you take out 100 yuan to make a sale, and the next day you make 120 yuan, ostensibly you make 20 dollars. But what would you think if I told you that if you resold another commodity yesterday, you would make $130 today? In other words, you did earn an "accounting profit" of 20 yuan, but in fact you could have earned an extra 10 yuan, and your original 100 yuan was not used in the "best" place, and your "opportunity cost" is "the maximum benefit that can be obtained by using this 100 yuan".

The "opportunity cost" is the maximum benefit that can be derived from the use of that resource in other areas, in other words, the "opportunity cost" includes other things that might otherwise be included. Once your benefits are equal to the opportunity cost, it means that you get the same benefits from doing this as you do that.

Going back to the original topic, in the production process, the decision-maker makes mr=mc, that is, let the last resource "make the same accounting profit from using it for production" as "make the accounting profit from using it for other purposes"!

If he continues to expand production, MR< MC, he can make money, but if he doesn't produce that much and uses those excess resources for other purposes, he can make more money.

You can get into it with such a little horn?

Marginal profit refers to the increase in profit by increasing the unit output, if the marginal profit is greater than 0, then increasing the output will increase the profit, the profit will increase with the increase in production, as the marginal profit becomes smaller, the amount of profit increase is getting smaller and smaller, when the marginal profit is 0, the profit no longer increases, therefore, to maximize.

The formula for calculating the marginal profit is: marginal profit (m) = sales revenue (s) - variable cost (v). Profit margin is a reflection of the increase in the sales volume of a product can increase the revenue of the enterprise.

The marginal cost of the sales unit price is the marginal profit, and the marginal profit refers to the increase in profit by increasing the unit output.

The marginal profit of the product is the profit realized by the enterprise. Thus, the concept of profit margin is used to determine whether a product produced by a firm should be discontinued.

As long as there is a marginal profit (i.e., its sales revenue is greater than its variable cost), production should continue.

Judge whether the product structure of the enterprise is reasonable. If all the products produced by the enterprise have marginal profits, it means that the product structure of the enterprise is basically reasonable. The cessation of production of a product must be premised on the premise that the marginal profit from the increase in production of other products is greater than the marginal profit of the discontinued product.

The market is unchanged, so the marginal benefit remains unchanged, when the marginal cost falls, the total profit from expanding production will definitely increase, and the marginal benefit is equal to the marginal cost is only a necessary condition for maximizing profits, not a sufficient condition.

When in an imperfectly competitive market, the manufacturer produces one more unit of production with modified products, which will lead to a decrease in the previous production of products, so that the marginal income is composed of two parts, one part is the production of the more unit of products, and the other part is the total reduction of the production products before the judgment.

The characteristics of a perfectly competitive market: there are many economic agents in the market, and the number of these economic agents is large, and the scale of each subject is very small, so no one can affect the supply and demand in the market through buying and selling, nor can it affect the market, and everyone is a passive recipient of the market.

in a perfectly competitive market.

, the average return and the marginal pre-market benefit.

The relationship between average returns and marginal returns is greater than marginal returns.

Average revenue refers to the average revenue earned by a manufacturer for each unit of product sold, that is, the ratio of total revenue to sales volume. The level of the average rate of profit depends on two factors, one is the level of the profit rate of each sector, and the other is the proportion of the amount of capital in the total social capital of each sector with different profit rates. The average rate of profit cannot be regarded as a simple and absolute average of the rate of profit of various sectors.

Average profit margin is a general trend towards the averaging of profit margins. The conversion of profits into average profits further obscures capitalism.

exploitative relations. The transformation of profits into average profits does not exclude the possibility that a small number of advanced enterprises in various sectors may still obtain excess profits.

For, in the previous analysis of the formation of the average rate of profit, each sector was regarded as a single or a whole, and therefore premised on the average organic composition of capital and the average rate of turnover of each sector; As for the differences that existed between enterprises in the same sector in this regard, they existed at that time.

Marginal gain refers to the increase in revenue from the sale of one unit of product, i.e. the gain from the sale of the last unit of product. It can be positive or negative. Marginal return is an important concept in vendor analysis. A necessary condition for maximizing profits.

Yes, the marginal benefit equals the marginal cost.

Profit margins at this time.

Equal to zero, to achieve profit maximization. Under the conditions of perfect competition, the output change of any manufacturer will not affect the first level, the elasticity of demand is unlimited for individual manufacturers, the total income increases in proportion to the increase in sales volume, and the marginal income is equal to the average income, which is equal to the first level.

A perfectly competitive market completely excludes any monopolistic nature and any restrictions, and operates entirely according to the regulation of the market, thus promoting the high efficiency of microeconomic operations. This is because under perfectly competitive market conditions, producers with low productivity and inefficiency will be forced to withdraw from the market in the competition of many producers, while producers with high productivity will continue to exist. Producers with higher production efficiency enter the market at any time to participate in market competition, and producers with higher production efficiency win in the new round of market competition.

Marginal cost is the increment in the total cost per unit of newly produced (or purchased) product. This concept suggests that the cost per unit of product is related to the total quantity of product.

Because it is cost-effective when the increase in income per unit of production (the unit of production makes the price of this volume slippery) is higher than the marginal cost; Otherwise, it is not cost-effective.

Therefore, any increase in revenue per unit of production cannot be less than the marginal cost, otherwise there will inevitably be a loss; As long as the revenue from an increase in production is higher than the marginal cost, even if it is higher than the total average unit cost, it will increase the profit or reduce the loss.

1.Earnings actually refer to revenue, not profits, minus marginal costs should be defined as marginal profits.

2.In the case of perfect competition, there are countless manufacturers in the market, all of which produce the best undifferentiated products and manufacturers are not restricted from entering the market. Therefore, when ** is greater than the marginal cost, there is a positive profit, and the manufacturer will enter an equilibrium state where the profit drops to zero until ** is equal to the marginal cost.

At this point, marginal benefit = marginal cost = **.

3.In other market situations such as monopoly and monopolistic competition, the principle of profit maximization is marginal benefit = marginal cost. It can't be judged by **=marginal cost.

FYI.

Because the equilibrium condition for profit maximization of a perfectly competitive firm is mr=mc=p=ac=ar, its demand curve, average return curve, and marginal return curve are completely overlapping, and they are the same ray parallel to the x-axis. It is easy to understand that the marginal cost of each unit of goods produced by a perfectly competitive firm is the same regardless of how many units of goods it produces, so the average cost is the same and equal to the marginal cost;Moreover, any unit of product** is equal to its marginal cost, so the average benefit is also equal to its marginal cost.

b.In a perfectly competitive market, the demand curve faced by a firm is a straight line (fully elastic) parallel to the quantity axis, and this demand curve is also the average and marginal yield curves of the firm.

Answer]: C grasp the supply and demand curves of enterprises in the perfect competition megaliter market through this question. In a perfectly competitive market, the marginal cost curve of an enterprise is the supply curve, while the demand curve of a perfectly competitive enterprise is a horizontal line that is flat or on the horizontal axis.