Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Textbook Question
Chapter 13.2, Problem 2QQ
How does a competitive firm determine its profit-maximizing level of output? Explain. • When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?
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4) How does a competitive firm determine its profit-maximizing level of output? Explain When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?
1-What are conditions of firm equilibrium?
2-what are the possibilities of perfect competition in short-run?
3. Show in a graph a situation when a competitive firm will minimise loss in the short run. Why will the firm continue operation despite making a loss? When will the firm shut down its operation in the short run?
Chapter 13 Solutions
Essentials of Economics (MindTap Course List)
Ch. 13.1 - Prob. 1QQCh. 13.2 - How does a competitive firm determine its...Ch. 13.3 - Prob. 3QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQCh. 13 - Prob. 1QR
Ch. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - A firm in a competitive market receives 500 in...Ch. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PACh. 13 - Suppose that each firm in a competitive industry...
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- Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?arrow_forward2- What is the general decision rule used by perfectly competitive firms to maximize profits? On a graph, indicate the long- and short-run supply curves of the firm. Explain clearly why there is a difference. Why would a firm stay open and take losses in the short-run?arrow_forward3. Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to consumers?arrow_forward
- How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a profit-maximizing competitive firm decide to shut down? When does a profit-maximizing competitive firm decide to exit a market?arrow_forward1. The accompanying graph for a firm that operates in a perfectly competitive market. $48 46 TFTGL 10 d. What is the firm's total variable cost at this level of output? e. What is the firm's fixed cost at this level of output? f. What is the firm's profit if it produces this level of output? g. What is the firm's profit if it shuts down? h. In the long run, should this firm continue to operate or shut down? 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 summarizes the demand and costs 4 MC ? 2 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 ATC D¹ = MR AVC AFC Quantityarrow_forwardWhat prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?arrow_forward
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