Q: firm in a perfectly competitive market: а. What is profit for this firm if price = $22? Make sure to…
A: Q MC($) AVC($) ATC($) 0 40 12.50 12.50 35.00 100 8.33 10.00 19.00 130 16.66 11.53…
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- Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time if price was greater than average variable cost but less than average total cost?In a perfectly competitive market, please compare the short run and long run prices in an increasing cost industry. Are they same? If yes, what drives the equal prices? If not, what is the main reason of that difference?Would a perfectly competitive firm produce if price were less than the minimum level of average variable cost? Why?
- Would independent trucking fit the characteristics of a perfectly competitive industry?In the long run, perfectly competitive firms make zero economic profit. If this is the case, why does the firm even bother producing? Why not exit the market completely?Can a perfectly competitive firm set its own market price?
