ASSIGNMENT INSTRUCTIONS
1.Consider this statement: “When marginal revenue equals marginal cost, total cost equals total revenue, and the firm makes zero profit.” Do you agree or disagree? Explain. First question please use online source explain 100-200 words2.
2.A minimum of one hundred (100) words should summarize the article about Labor Market Equilibrium, and another minimum of one hundred (100) words should relate the summary to Macroeconomics.
HOW TO WORK ON THIS ASSIGNMENT ( EXAMPLE ESSAY/ DRAFT)
On the presumption of perfect competition, the statement “When marginal revenue equals marginal cost, total cost equals total revenue, and the firm makes zero profit” is predicated. A company in perfect competition is a price-taker and is unable to affect the market price, claims Investopedia. The price of the good or service the business sells determines its revenue. The difference in revenue brought on by a one-unit shift in output is known as marginal revenue. The difference in cost brought on by a one-unit change in output is known as the marginal cost.
In a market with perfect competition, a company’s profit is maximized by producing when marginal revenue and marginal cost are equal. Total revenue and total costs are equal at this time, and the company makes no money.