NOTE THAT A CUSTOM RUBRIC IS USED FOR THIS DISCUSSION.
In a competitive market, there are many buyers and sellers. The goods offered are largely the same, and firms can freely enter or exit the market. Buyers and sellers are both price takers. The amount of output produced determines the revenue of a firm.
First, play the simulation game Production, Entry, and Exit in the MindTap environment. In this discussion, you will share your experiences playing that game. Your work in this discussion will directly support your success on the course project.
In your initial post, include the image of your simulation report in your response. See the How to Submit a Simulation Report Image PDF document for more information. Then, address the following questions:
- Imagine you own your own business. Based on what you learned from the simulation, what factors would determine your entry and exit into a market?
- Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce?
- How does the impact of fixed costs change production decisions in the short run and in the long run? Refer to the average total-cost (ATC) model included in the textbook to demonstrate.
In your responses, comment on at least two posts from your peers. Research and provide examples from the news of firms in perfectly competitive markets. Discuss with your peers how costs impact these firms’ profitability.
To access your simulations, click the simulation link found in the module.
To complete this assignment, review the Module Five Simulation Discussion Rubric.