A firm in a perfectly competitive market canO choose the quantity they will produce and the price at which they will sellO choose the quantity they will produce, but not the price at which they will sellO choose the price at which they will sell, but not the quantity will producechoose neither the price at which they will sell nor the quantity they will produce

A competitive market is one with a very high degree of competition among the firms to sell their…

A firm in a perfectly competitive market can O choose the quantity they will produce and the price at which they will sell O choose the quantity they will produce, but not the price at which they will sell choose the price at which they will sell, but not the quantity will produce O choose neither the price at which they will sell nor the quantity they will produce

A firm in a perfectly competitive market can O choose the quantity they will produce and the price at which they will sell O choose the quantity they will produce, but not the price at which they will sell choose the price at which they will sell, but not the quantity will produce O choose neither the price at which they will sell nor the quantity they will produce

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

See similar textbooks

Similar questions

Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
In a perfectly competitive market, when are economic profits possible? O Long-run O Economic profits are always zero, firms earn normal profit O Any time, it depends on the indivual firm O Short run
How does an increase in market demand for a product in a perfectly competitive market affectthe short-run and long-run equilibrium? Show on a diagram and discuss the adjustments firms make in terms of price and quantity to reach the new equilibrium. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marqinal revenue to maximizing level of output to and their profit- O a. decrease; increase O b. decrease; decrease O c. increase; increase d. increase: decrease
Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
Consider a competitive firm that is operating in the short run. The firm is maximizing profits and just breaking even. Assume it has to pay a monthly license fee of $100 and that the fee must be paid for as long as the firm operates. What should the firm do to maximize profits in the short run if the price of the license fee increases from $100 to $150? a. increase price Ob. increase output c. reduce output O d. not change output e. both a and c
The supply curve for a perfectly competitive firm is its marginal cost curve as the firm should always produce at the output level where price equals marginal cost. O True O False
Consider the perfectly competitive market for apples, which is currently in long-run equilibrium. Now the government decreases the annual license fee, which is needed to operate the business. We would expect that O Firms enter the industry in the short-run O Firms decreases the quantity produced in the short-run O Firms make more money in the short-run O Firms increase the quantity produced in the short-run
Compact discs are sold in a perfectly competitive market. The current market price of compact discs is $15. If at the current level of production of compact docs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should OA produce fewer compact discs OB. continue producing the current level of compact discs OC. produce more compact discs OD. raise the price of its compact discs *
Which of the following is true about the long run in a competitive industry? There are more firms operating in the long run than in the short run because firms have more time to enter the industry. O Yearly profits are lower in the long run than in the short run. O The long run supply curve will tend to be more elastic than any short run supply curve. Yearly profits are higher in the long run than in the short run.
A perfectly competitive firm can produce its current level of output at an average total cost of $10 and a marginal cost of $8. If the market price of the product is currently $8, what should the firm do? a. The answer depends upon the relationship between price and average variable cost. The firm should shut down if average variable cost is $8 or greater, but the firm should continue to produce the current level of output if average variable cost is less than $8. O b. The firm should definitely shut down since average total cost exceeds price. Oc. The firm should continue to produce, but they should decrease production in order to increase profit. O d. The firm should increase production in order to increase profit. 0= Icon Key mentMain.do?takeAssignmentSessionLocator=assignment-take,53ef7eec-ce82-423c-a5cf-a72630d672e7#