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: Why is the marginal revenue of a perfectly competitive firm equal to the market price?
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
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: In the short run if a perfectly competitive firm finds itself operating at a loss, it will
A: To find : For a perfect competitive firm in short run if it find itself operating loss what will…
Q: The short-run supply curve of a firm operating in a perfect competition market is equal to the…
A: A shutdown arises when price or average revenue (AR) falls below average variable cost (AVC) at the…
Q: At what output does a perfectly competitive firm maximize its profit? when marginal cost equals…
A: A perfectly competitive firm is the one where there are large number of buyers and sellers selling…
Q: The demand curve for a perfectly competitive firm is a) always greater than its marginal revenue…
A: Perfect competition is a business system where a homogeneous commodity is sold by several companies.…
Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…
A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…
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: In the long-run, a perfectly competitive firm will earn what kind of economic profit?
A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.
Q: Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average…
A: A break-even price is the amount of money, or change in value, for which an asset must be sold to…
Q: In a perfectly competitive industry, what mechanism that adjusts price to minimum long-run average…
A: Firms are considered perfect competition when these conditions happen: (i) the industry consists of…
Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…
A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…
Q: The connection between marginal revenue and price depends on a business's competitive environment.…
A: Under perfect competition, there exists a large number of buyers and sellers. Each firm sells…
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: Under what conditions should a competitive firm shut down in the short run?
A: In the short term, a corporation that operates at a loss (where the income is less than the overall…
Q: “In a perfectly competitive market, firms always operate at the lowest per-unit cost." Is the…
A: A market(mkt) is said to be perfectly-competitive when there is a large number of buyers(b) and…
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: A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the…
A: Perfectly competitive industry It refers to a industry in which there are large number of buyers and…
Q: What is the relationship between marginal cost and the short-run supply curve for the purely…
A: Supply curve is the graphical representation of direct relationship between price and quantity…
Q: The table below gives the short run total cost function for a typical firm in a perfectly…
A:
Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.
A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…
Q: The graph shows the cost curves for a perfectly competitive firm. If the market price of the product…
A: A perfectly competitive market is where there are large number of buyers and sellers. The price of…
Q: Why is a firm in a perfectly competitive market called a price taker? How does a firm in perfect…
A: Price taker: It means a person or company accepting the prevailing prices in the market and unable…
Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?
A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…
Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…
A:
Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC АТС…
A: At profit maximization, MR = MC and price is determined by the demand curve.
Q: Suppose a perfectly competitive firm’s demand curve is below its average total cost curve. Explain…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…
A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…
Q: In the long-run equilibrium of a competitive market with identical firms, what are the relationships…
A: please find the answer below.
Q: why does price equal marginal revenue for the perfectly competitive firm? what is the relationship…
A: Perfect competition refers to the type of market organization in which there are many buyers and…
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: In a perfectly competitive market, please compare the short run and long run prices in an increasing…
A: Perfect competition refers to the market structure where there are a large of number of buyers and…
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: Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: If the price was given what is the formula equation to figure the "profit-maximizing quantity of…
A: Perfect competition is a market situation where there are many buyers and sellers. Thus, the firm is…
Q: Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the…
A: A perfect competition(PC) market is one with many consumers and sellers producing identical…
Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…
A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…
Q: The marginal revenue curve for a perfectly competitive firm is
A: Marginal revenue is the additional revenue earned through the sale of additional output. A graphical…
Q: At the profit-maximizing output level, what will be the relationship between the perfectly…
A: A profit-maximizing output level is when that gives highest returns to the firm as any change in…
Q: A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price…
A: In perfect competition, eqm is found by the intersection of MC(marginal cost) and P(price).…
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- Why should a firm shut down if its average variable cost curve is above the price of their product?What is the relationship between marginal cost and the short-run supply curve for the purely competitive firm?What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere? Construct a concrete cost function of this type and carry out the search for the profit-maximizing output.
- 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?The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5What does zero economic profits in the long-run mean to the owner of a business operating in a perfect competitive market?
- In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there are internal economies of scale? Explain the answer.At what output rate does the firm maximize profit or minimize loss?Explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example of when a firm might face this decision.
- What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive firm?The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry.Is it even better for perfectly competitive firms to produce output even though it is losing money? If so, when?
