suppose farmer smith grows apples the entire market for appl

suppose farmer smith grows apples. the entire market for apples is shown in the figure below. assume the market for apples is perfectly competitive

If the market is perfectly competitive, then

Marginal revenue = Marginal cost

In perfectly competitive market, the firms are price takers and hence the equlibrium is where MR= MC=Price.

The price would be determined by total demand= total supply and price is stable

by,

Nishant Bhatt