Respuesta :
Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y, which sells for $2 in a purely competitive market. The prices of l and m are $10 and $4 respectively. In equilibrium the MPs of l and m, respectively, are 5 and 2.
What is a competitive market?
In a competitive market, neither a single customer nor a single manufacturer can have a significant impact on the market. Its response to supply and demand changes as shown by the supply curve, which depicts the quantity of a good. A perfect market, also known as an atomistic market, is defined by various idealising conditions, which are together referred to as perfect competition, or atomistic competition, in economics, specifically general equilibrium theory. Farming is a fantastic illustration of a competitive market. Despite the fact that there are thousands of farmers, none of them has the power to change the market or the price based on how much they produce. The farmer has little choice but to raise the crop and take whatever price is offered for it at the time.
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