Explain how economics make profit or loss when firms are perfectly competitive.

Assume that the plum market has lots of different farms.  They are producing pretty much the same product. The plum market is very much like a perfectly competitive market.  When answering this question, please use an explanation in words and the diagrams of the perfect competition model.  A capitalist interested in the California plum market has asked you for an analysis.  The capitalist comments, “I am guessing that plums are going to increase in popularity. What does that mean in the market?" Help this capitalist understand what might happen in this market given that plums will experience an increase in popularity.  Please apply the perfect competition model. c. What happens to efficiency during these market changes? Please explain.

What is the most important decision a perfectly competitive firm must make in order to maximize profit? what quantity to produce what price to charge what quality to produce what quantity of labor is needed

Q3

Explain what it means in terms of opportunity cost when Economic profits are zero?

You read in a business magazine that farmers are reaping high profits. With the theory of perfect competition in mind, what do you expect to happen over time (in the long run) to each of the following?  The profits of farmers based on what happens to the price, what do you think will happen to the profits earned by the firms/farmers that previously existed in the market?

In microeconomics long run equilibrium will prices rise or fall

The perfectly competitive firm and market price (single commodity market model). P=$3 =MR=AR Q=5000 Market Firm 2:30 / 2:44 * YouTube E3 CC 71. In the last video, what is the price the competitive firm receives for each bushel of apples it sells? Select one: a. $2 b. $3 c. $4 d. $5

Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?

What are the four conditions of a purely competitive market?