Q: Determine and explain the profit maximization output of a perfectly competitive firm.
A: Perfect competition is a competition where both buyers and sellers have perfect information about a…
Q: In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while…
A: The short-run is the time period where at least one variable is fixed and others are variable. In…
Q: Can a perfectly competitive firm set its own market price?
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: The firm shown in the diagram above is making a in the short run of
A: option first is right answer Loss, $200 Other option are invalid Answer show below
Q: How would you describe the demand curve for the purely competitive firm? For the industry?
A: Purely competitive firms are characterised by being price takers where decisions are made…
Q: In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there…
A: In the perfectly competitive market, firms are the price takers as they produce identical product…
Q: Explain why it is not economical for a firm to operate under increasing returns and negative…
A: Solution: Increasing return: It is the first phase of production. In this phase every additional…
Q: For a perfectly competitive firm in short-run equilibrium, if the price is between AVC and ATC,…
A: A perfectly competitive firm is price taker as it is one of many firms producing identical goods.
Q: Explain why perfectly competitive firms are classified as a price taker
A: Answer - Price Taker Firm - The price taker firm are those firm who has not the ability to influence…
Q: Show and explain how the short run supply curve of the perfectly competitive firm is derived.
A: in a perfectly competitive market there are large number of firms producing similar and identical…
Q: In a perfectly competitive market, the individual firm's demand curve A) slopes steeply downward to…
A: In a perfectly competitive market, there is a large number of buyers and sellers. Each seller is…
Q: discuss the short run supply curve for a perfectly competitve firm
A: There are various forms of market structure such as perfect competition, oligopoly, monopoly, 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: If the price of a product produced by a perfectly competitive firm falls below the average total…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1.
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: Define perfect competition. Does a firm under perfect competition always make supernormal profit?…
A: The Perfect Competition market is that type of market in which the number of buyers and sellers is…
Q: Under what conditions will a firm shut down temporarily? Explain.
A: One of the classifications of a firm’s costs is fixed cost (FC) and variable cost(VC). Fixed costs…
Q: Is it true that a firm in a perfectly competitive market will never be able to earn positive…
A: There are different types of market which are broadly grouped as: Perfect competition and Imperfect…
Q: Do you expect firms in perfectly competitive industries to have high profits in the short run? Why…
A: The perfectly competitive market is a form of market where unlimited no of buyer and seller exist,…
Q: Q4) A perfectly competitive firm has the following total cost function: 05 Total output Total Cost…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The graph depicts the average total cost curve for a perfectly competitive firm. At the long-run…
A: In a perfectly competitive market, price is constant at all levels of output so it is equal to…
Q: Graphically explain the profit maximization condition of a perfect competitive firm.
A: In the perfectly competitive market, a firm experiences a situation that the average revenue will be…
Q: We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the…
A: In a perfect competitive market, there are large number buyers and sellers selling identical goods…
Q: Suppose that the a firm's cost function is given by: C(q)=1+3q2. Then, the expression for this…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Consider a firm that has no fixed costs and that is currently losing money. Are there any situations…
A: If a firm has no fixed cost, the total cost of a firm is equal to the total variable cost, and…
Q: you read in a business magazine that the computer firms are reaping high profits. with the theory of…
A: In a perfectly competitive market, the new firms and easily join or leave the market. Basically, the…
Q: Using the figure above, what is profit/loss for the firm?
A: In the case of a profit-maximizing firm, the optimal point of production is where the price is equal…
Q: Graphically show how the profit-maximizing level of output is determined for the perfectly…
A: Perfect competitive firm is a price taker and can sell any quantity of commodity at the market…
Q: "There are some technologies for which it is impossible to maximize profit in the long run. "…
A: Maximization of profits occur at the point where the marginal revenue and marginal cost are equal.
Q: The firm in pure competitive
A: A theoretical market structure that meets the following requirements is known as pure or perfect…
Q: Explain why P=MC in the short run equilibrium of the perfectly competitive firm, whereas in long run…
A: Economic efficiency includes the allocative (P = MC) and productive (MC = AC) efficiencies. Both…
Q: the profit maximization condition for a perfectly competitive firm in the short-run- is
A: Perfect competition is the market form that involves a large number of buyers and sellers in the…
Q: condition for profit maximization for a pure
A:
Q: Explain what the long run profit conditions are for a perfectly competitive market
A: Perfectly Competitive Market is the one where there are large number of buyers and sellers, selling…
Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What typels)…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: A perfectly competitive firm is making a loss if
A: We have to find a perfectly competitive firm is making a loss.
Q: perfectly competitive firm incurs an economic loss, it should: a
A: ANSWER a perfectly competitive firm incurs an economic loss, it should is
Q: If marginal revenue is less than marginal cost for a perfectly competitive firm , it should a)…
A: Marginal revenue is the amount of Revenue one could gain from selling one additional unit. Marginal…
Q: If any of your answers are negative, put a minus sign in front of the number. You are given the…
A: We know , TC = TFC + TVC MC = TCn - TCn-1 TFC = AFC * Q TVC = AVC*Q TC = ATC*Q
Q: Question When a perfectly competitive firm is at the profit maximizing output level what will be the…
A: Perfectly competitive market: In a perfectly competitive market structure, there exists a large…
Q: Question 45 Consider the graph of a firm in a perfectly competitive market to answer the question…
A: Perfectly competitive market The market mechanisms imply the interaction between suppliers and…
Q: Using the graph below, determine if the firm should shut down or stay open in the short run and why.
A: From the graph it is easy to understand the firm is earning profit or in a position of facing loss.
Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ?
A:
Prove that for a
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Solved in 2 steps
- For a perfectly competitive firm, profit maximization doesnot conflict with resource allocative efficiency. Do you agree?Explain your answer.A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 90 + 10q + 2q² and a marginal cost function (MC) of MC(q) = 10 + 4q. At the given market price (P) of $16, the firm is producing 1.50 units of output. Is the firm maximizing profit?Using the given values in the table, illustrate a cost curve for this firm. Be as precise as possible.
- What is the relationship between marginal cost and the short-run supply curve for the purely competitive firm?Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its average variable cost is downward sloping, what can you say about slope of average total cost?
- How would you draw a firm graph from a perfectly competitive constant cost market in the short run where there are economic losses.If the price of a product produced by a perfectly competitive firm falls belowthe average total cost, what would you predict about production in (i) short run (ii) long runUse the following information about a perfectly competitive (PC) firm to determine which quantity will maximize short-run profit if the product price = $6. Recall that an X indicates that no number should %3D be calculated for that space on the chart. Marginal Quantity Total Cost Cost 8. 12 17 3 4 30 38 23 1, 2.