ECO 201 5-2 Simulation Discussion: Production, Entry, and Exit In a competitive market, there are many buyers and sellers

ECO 201 5-2 Simulation Discussion: Production, Entry, and Exit

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.