Explain why a company would shut down in the short run.

Q: What is the competitive structure of the firms listed below and why? A restaurant in a small,…

A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…

Q: Should the firm shut down in the short-run?  Explain in detail why or why not.

A: The decision to shut down a firm in the short run depends on the comparison between the price and…

Q: Describe a fixed and variable cost in the restaurant industry and explain how the costs might affect…

A: Fixed cost is that part of the cost incurred in the short run that does not depend on the amount of…

Q: A bookstore sells 90 textbooks at a price of $70 a book. The average total cost is $50 per textbook.…

A: Given that : Number of textbooks = 90 Price of a book = $ 70 Average total cost = $ 50

Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: Explain the various specifications of perfect competition market.

A: Perfect competition is an idealized market structure that serves as a benchmark for analyzing other…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

A:

Q: What type of product by individual firms (none, total, some etc) are in a perfect competition and…

A: Perfect competition is a market structure in which all producers and consumers have complete and…

Q: Will a perfectly competitive market display productive efficiency? Why or why not?

A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: Discuss the long-run benefits of running a firm in perfect competition.

A:

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: In the long run, perfectly competitive firms make zero economic profit. If this is the case, why…

A: When a company's economic profit is zero, it is in a state of normal profit, which is why normal…

Q: What are the characteristics of a perfectly competitive industry?

A: Perfectly competitive market refers to market where large number of buyers and sellers participate…

Q: Why perfect competition considered as a price taker?

A: According to economic theory, perfect competition exists when all companies sell the same things,…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: why do economists and policy makers use perfect competition as a benchmark to analyze market…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: Family Mart like inner city grocery stores, sometimes exist even though they do not earn economic…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Why is Perfect Competition an ideal market structure? Please explain

A: In a market, a perfect competition is considered as an ideal market when there is other markets like…

Q: Journal Entry Complete a Journal Entry: With reference to "The Parable of the Seaside Inn", answer…

A: Resort hotels may choose to stay open during the off-season despite charging bargain rates that may…

Q: A market in perfect competition is in long-run equilibrium. What happens to the market if labor…

A: A perfect competition(PC) market is the market with many producers and consumers producing…

Q: Under what conditions would a firm decide to shut down in the short run but remain invested in the…

A: In a market, a firm faces different situations in short-run and long-run due to which it makes…

Q: What is pure or perfect competition? Define and discuss.

A: A firm will  attain profit if its price exceeds average total cost

Q: an excess profit be earned in perfectly competitive markets in the long run. Explain.

A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…

Q: uan makes dining room chairs in a perfectly competitive industry. He is looking for economic advice…

A: Perfectly competitive market refers to the market which is characterised by presence of large number…

Q: At what point would a competitive firm shut down in the short run

A: A competitive firm is a price taker, which means the firm takes the price determined by the market…

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Describe a firm’s shutdown decision

A: Costs are the expenses that the firm has to incur in its production activities. In the short run,…

Q: Normal profit diagrams

A: The Normal Profit can be defined as the one in which the firm earns enough revenue to cover it's…

Q: Tulip growing is perfectly competitive and all growers have the same costs. The market price is $25…

A: With the give information, following diagram can be drawn:

Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: A market structure known as perfect competition is defined by a large number of companies producing…