Can a perfectly competitive firm set its own market price?

Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…

A: In a perfectly competitive market, there will be a large number of sellers, which means that a…

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 does a purely competitive firm not charge price above the market price?  Why does it not charge…

A: In a perfect competition market structure, there exist a large number of buyers and a large number…

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: What is the shape of the demand curve of a firm under perfect competition

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

Q: Analyze why perfectly competitive firms are not able to raise prices

A: Answer - Perfectly competitive Firm - Perfectly competitive firm are the firms who are price taker…

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: Explain why a perfectly competitive firm earns zero economic profits in the long run.

A: In an economy, different types of markets exist to make an exchange of different types of products.…

Q: What is the shape of the demand curve faced by a firm under perfect competition?

A: Perfect competition, according to economic theory, occurs when all companies sell identical items,…

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: For a perfectly competitive producer, the firm's short-run supply curve is: MC ATC AVC Q

A: A firm in perfectly competitive market is a price taker as there are many sellers selling identical…

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: How does a perfectly competitive firm decide what price to charge?

A: Firms in a perfectly competitive market cannot influence the price as there are large numbers of…

Q: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the…

A: A perfect competition(PC) market is one with many buyers and sellers producing identical products.…

Q: explain three conditions that characterise a perfectly competitive market

A: To promote the trade of products and services, a marketplace where two or more parties could meet.…

Q: Which of the following is true for a perfectly competitive industry?

A: option 3 is rhe correct answer The firm in industry produce standardized products  It's dentical…

Q: equilibrium

A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…

Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…

A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…

Q: Which of the following is true of perfectly competitive firm that keeps producing in the short run?…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The price…

Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…

A:

Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…

A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…

Q: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…

Q: For a perfectly competitive firm, what is the relationship between Price and Marginal Revenue?

A: For a perfectly competitive firm price is equal to marginal revenue

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 the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC P = MC All…

A: Perfectly competitive market refers to a market structure where there are many firms and buyers.…

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: 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: Can you think of a product that meets at least most of the criteria required for a perfectly…

A: Perfectly competitive market refers to the market which has been characterized by the presence of…

Q: Predict and explain the long run equilibrium of a firm operating in a perfectly competitive market?

A: The structure of the market where there are a large number of buyers and sellers selling homogenous…

Q: In a perfectly competitive market ,why does the firm always break even in the long run ? Illustrate…

A: In perfect competition, in the very short run firms experience profits. However, new firms enter…

Q: In a perfectly competitive market all producers sell

A: Firms under perfect competition cannot influence the price at which goods and services are sold in…

Q: A single firm in a perfectly competitive market is relatively small compared to the rest of the…

A: In the ‘perfect competition(PC)’ all firms sell ‘identical products’ that are homogeneous. Here all…

Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…

A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…

Q: The market supply curve in a perfectly competitive market is typically?

A: A firm in a perfectly competitive market is a price taker. It has a supply curve which is the rising…

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: In a perfectly competitive market, firms:

A: When there are large number of buyers and sellers in the market striving  for a product then there…

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: When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: What are the characteristics needed for a perfectly competitive market?

A: In a perfect competitive market, there is a number of buyers and sellers, selling similar products.…

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…

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.