Q: 1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its…
A: Since you posted multiple questions, we will provide the answer for first one questions.
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Q: need correct answer. absuletly upvote !!!!
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A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…
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A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
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A: (a) The long run equilibrium in a perfect competitive market can be illustrated as follows.
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A: Introduction Perfect competition is a form of market where a large numbers of firms producing the…
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Q: a. zero b. No answer text provided. c. negative d. positive
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A:
Q: 16. When a perfectly competitive firm finds that its market price is below its minitmum average…
A: The diagram below shows MC, AVC and ATC curves.
Q: (a) Why the competitive firm faces a relatively horizontal demand curve. (b) The profit…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…
A: Perfect competition this is a type of a market structure.
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A:
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A: Since you posted multiple questions, we will provide you the answer of first question. If you want…
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Q: 1. In the short run, the market price is $8. What is the profit maximizing output for this firm? 2.…
A: Note : Since the question contains multiple sub parts, only the first three sub parts shall be…
Q: 3. For a perfectly competitive firm: a. the demand curve is perfectly inelastic at the market price…
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Q: 20) What will a firm in a perfectly competitive industry do in the short-run if the price of its…
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Q: 31. Which of the following is the best example of a perfectly competitive market? a. soft drinks b.…
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perfectly competitive firm's demand curve is perfectly elastic at the market-determinedprice .a. True
b. False
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Solved in 2 steps
- Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.How does a perfectly competitive film calculate total revenue?If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
- 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?A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?What prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?
- 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price and demand. 4. What is the optimal output rule for profit maximization? Draw a graph to show the output level where a perfectly competitive firm maximizes profit.16. The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barri- ers to entry. a. What level of output will maximize the firm's profit level? b. What price will the firm charge? c. How much revenue will the firm receive in this situation? How much is total cost? Total profit? d. How will the situation change over time?J 8. Short-run and long-run effects of a shift in demand Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of $5 per pound of tempeh and quantity of 250 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as tempeh could increase your expected lifespan by 6 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. PRICE (Dollars per pound) 10 9 8 7 9 5 4 3 2 1 0 0 50 100 Supply In the long run, some firms will respond by Demand 150 200 250 300 350 400 450 500 QUANTITY (Millions of pounds) tempeh at every price. In the short run, firms will respond by Demand Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after…
