Q: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…
A: A perfectly competitive firm is price taker. The market price it faces is constant. This implies…
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: An accountant and an economist are looking at a firm’s records and market situation. The accountant…
A: Profit: It means the difference between the amount earned and the amount spent.
Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?
A: Given that the market structure is monopolistic competition, the profit maximizing condition is MC=…
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: Do entry and exit occur in the short run, the long run, both, or neither?
A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…
Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: On the next few slides be sure to answer the following questions, What is perfect competition? Give…
A: Under perfect competition, there are many buyers and sellers and prices tend to reflect the demand…
Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…
A: Perfect competition refers to the type of market organization in which there are many buyers and…
Q: The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has…
A: The profit-maximizing output level is acquired at the intersection of the marginal cost and marginal…
Q: Why do you think a firm in a perfectly competitive industry does not have market power?
A: The market is a location where the transaction of services and commodities takes place. It 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: What are three short-run outcomes in the perfect competition?
A: In the short-run, the perfect competitive firms, can have three outcomes.
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: Why do a firm's profit disappear in the long run?
A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…
Q: You own four firms that produce different products. The following table summarizes the conditions in…
A: In the given table, cost and revenue functions of four firms are given according to which firms will…
Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?
A: A monopoly occurs when a single person or corporation serves as the exclusive supply of a certain…
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: Only answer question 6A
A: Total variable cost is the cost of producing an output which increases with an increase in the…
Q: What is pure or perfect competition? Define and discuss.
A: A firm will attain profit if its price exceeds average total cost
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: When will a business shut-down in the short-run?
A: Short-run: - it is a short time period in which some factors of production are variable and some are…
Q: Explain how the long run differs from the short run in pure competition.
A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…
Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: What does it mean to be operating a firm in the "long run?"
A: "Since you have asked multiple questions, we will only first question for you. If you have any other…
Q: Can you explain what is Perfect Competition and how does Perfect competition work?
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: What does that mean in terms of long-run profit?
A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…
Q: Briefly explain in (2-3 sentences) why a firm may choose to stay open in the short run even if their…
A: The economic profit is the difference between accounting profit and implicit cost. It can be…
Q: Why are abnormal profits of a firm difficult to sustain?
A: The abnormal profits under perfectly competitive market are difficult to sustain because of the free…
Q: 3. You read in a business magazine that farmers are reaping high profits. With the theory of…
A: Perfect competition is a market structure where there are large number of buyers and sellers. The…
Q: explains why in perfect competition, there are no economic profits or losses in the long run?
A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…
Q: Briefly describe what the effect of producing a greater quantity of products will be in relation to…
A: Introduction A perfectly competitive firm simply has to make one fundamental decision: how much to…
Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…
A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…
Q: Explain why in the long run perfect competitive firms can only break even.
A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…
Q: 4. You read in a business magazine that farmers are reaping high profits. With the theory of perfect…
A: Initially the farmers earned high profits, but moving on to a longer period, in the perfect…
Q: Explain why a company would shut down in the short run.
A: The shut down point is the point at which a firm decides to seize its operations in the short run…
Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
A: Answer - In the long run where the every input can vary and as in the long run where firms can make…
Q: What is Perfect competition?
A: Meaning of Market: The term market refers to the situation under which the producers or the…
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: What does perfect competition mean and what are the concepts of it?
A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…
In doorknob manufacturing industry, you observed that the firms are making losses. In the long run what would happen?
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