Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…
A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…
Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…
A: Economic profit is defined as difference between revenue that is received from the sale of a good or…
Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…
A: Perfect competition: Under the perfect competition market, the price is decided by the demand and…
Q: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…
Q: Use the following graph to answer the next question. MC ATC AVC 1.25 1.05 .90 .80 .65 .60 15 20 35…
A: Given: Market price = $1.25 Output produced at this price = 20 units ATC corresponding to this…
Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…
A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…
Q: a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? c. Sketch…
A: Firms in a perfectly competitive market face a perfectly elastic individual demand curve as they…
Q: What is the shape of the demand curve of a firm under perfect competition
A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…
Q: The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has…
A: The profit-maximizing output level is acquired at the intersection of the marginal cost and marginal…
Q: Question 12 The possibility that a firm may earn losses raises a question. must the perfect…
A: The representation of perfect competition directs to a theoretical market structure. In a perfect…
Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the…
A: Here, the given graph shows the marginal cost and average cost of producing doughnuts by the firm in…
Q: Explain why a perfectly competitive firm earns zero economic profits in the long run.
A: In an economy, different types of markets exist to make an exchange of different types of products.…
Q: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…
A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…
Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?
A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…
Q: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. Label…
A: A market is a place where the buyers and the sellers interact with each other and the exchange of…
Q: explain four assumptions of perfectly competitive mar
A: In economics, the market for various products in the economy is differentiated on the basis of…
Q: P S MC ATC D= MR Refer to the accompanying graphs for a competitive market in the short run. Which…
A: The competitive market is the market structure where a large number of buyers and sellers are taking…
Q: Derive the economic profit and loss of a firm in a perfectly competitive market from the…
A: Perfect competition is the market structure where large numbers of firms and buyers are exchanging…
Q: an excess profit be earned in perfectly competitive markets in the long run. Explain.
A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…
Q: Sterling runs a donut shop which which is being operated in a perfectly competitive market where…
A: Firms in perfectly competitive market, are price taking firms because there are a large number of…
Q: Imagine a firm in a perfectly competitive market. The firm is currently making an economic profit.…
A: Perfect competition happens when all organizations sell indistinguishable items, market proportion…
Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…
A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…
Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: 5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high…
A: In the long run, many new firms enter the perfectly competituve industry as they are attracted by…
Q: Based on the characteristics of perfectly competitive market explain why firms in this market are…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…
A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…
Q: List the characteristics needed for a perfectly competitive market. Provide a simple explanation of…
A: A perfectly competitive market is the market in which there are lots of buyers and sellers, buying…
Q: Why are firms called price takers in a perfectly competitive market? Why do different firms produce…
A: A perfectly competitive firm is known as a price taker, because the pressure of competing firms…
Q: Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to…
A: When perfectly competitive markets combine with utility-maximizing buyers, the resulting quantity of…
Q: In the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC P = MC All…
A: Perfectly competitive market refers to a market structure where there are many firms and buyers.…
Q: Identify a perfectly competitive firm
A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…
Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…
A: In the long-run, all the firm in a perfectly competitive market earns positive economic profit…
Q: The market for corn is perfectly competitive and all firms are in long-run equilibrium currently.…
A: If corn is an inferior good, then with rise in income of consumers, they will demand less amount of…
Q: Papa Mel's is an alfalfa farm in a perfectly competitive industry. Use the information in the graphs…
A: In a perfectly competitive market, market price is taken by the firms and market quantity explains…
Q: What is the meaning of " acceptable loss " for a perfectly competitive firm ? Drawa graph and…
A:
Q: Refer to the above graph for a purely competitive firm in the short run. What minimum output level…
A: In order to answer this question, it is imperative to understand the concepts of breakeven and…
Q: Graph the following for a perfectly competitive firm: A graph for short run economic profit for the…
A: In a perfect competitive market, there are numbers of buyers and sellers, selling similar products.…
Q: A requirement for a perfectly competitive market is that the sellers sell identical products…
A: The perfect competition is a market condition in which there are many producers and the production…
Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.
A: There are mainly two types of costs in the process of production.
Q: In the long run, a perfectly competitive firm can
A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…
Q: Hi there. Can you plesse assist with the following question below Explain, with the aid of a graph,…
A: A perfectly competitive firm maximizes profit by producing output at a level where price equals…
Q: What are the characteristics needed for a perfectly competitive market?
A: In a perfect competitive market, there is a number of buyers and sellers, selling similar products.…
Q: Hi there can you please help me to answer the following question 1. Explain, with the aid of a…
A: A perfectly competitive firm can either earn profit or incur a loss. The firm incurs two types of…
Graph the following for a
- A graph for long run – normal profit for the firm.
Step by step
Solved in 3 steps with 1 images
- Graph the following for a perfectly competitive firm: A graph for short run economic profit for the firmFind the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.Graph the following for a perfectly competitive firm: A graph showing the area of economic profit or loss
- Graphically depict a purely competitive firm in the short-run. You can have the firm making a profit or loss in the short-run. Brief explanation and graphs required.Google search images and find the graphs for a perfectly competitive firm. Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.Imagine a firm in a perfectly competitive market. The firm is currently making an economic profit. Carefully explain what will happen in this market and will happen to the firm's profits in the long-run
- The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. Draw a graph showing this situation for a firm in the short run.Graph the following for a perfectly competitive firm: A graph for short run economic loss for the firm.The diagram below shows a perfectly competitive firm. What is the economic profit earned or loss incurred by the firm?
- must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm is in long run equilibrium? Explain and draw a graph to represent your answerAccording to the graph below, if the price of the good is $17, then the result for the perfectly competitive firm will be: Graph: Short-run profit and loss Price MC ATC AVC 1S 13 Quantity Select one: a. making a long-run loss and so it will shut down. b. making a short-run loss but it will continue to produce. c. making a long-run profit. d. making a normal profit.The table shows some cost data for Frank's Fortune Cookies which operates in a perfectly competitive market. At a market price of $42.83 a batch, what quantity does Frank's produce and what is the firm's economic profit in the short run? When the market price is $42.83 a batch, Frank produces batches of cookies. When Frank produces 6 batches of cookies, Frank's economic profit is $ Total Average Average product (batches fixed cost variable Average cost total cost Marginal cost per day) (dollars per batch) 1 77.00 45.00 122.00 31.00 2 38.50 38.00 76.50 23.01 3 25.67 33.00 58.67 20.99 4 19.25 30.00 49.25 26.00 5 15.40 29.20 44.60 33.98 6 12.83 30.00 42.83 51.02 7 11.00 33.00 44.00 77.04 8 9.63 38.50 48.13
