In the long-run, a perfectly competitive firm will earn what kind of economic profit?

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition exist when there are large number of buyers and sellers in the market and the…

Q: Can a perfectly competitive firm set its own market price?

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

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run? Would…

A: A market will be perfectly competitive when a larger group of suppliers serve identical or…

Q: According to marginal analysis, a perfectly competitive firm will produce an output level where what…

A: According to marginal analysis, a perfectly competitive firm will produce an output level where…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition is a market structure where the price of the commodity sold is same and is…

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: The number of firms in an industry is not always a good indicator of the extent to which that…

A: The number of sellers in an industry determines the market share of the firm. A large number of…

Q: must each perfectly competitive firm be in equilibrium if the industry is in the long-run…

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

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

A:

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: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: f a competitive firm finds that its average variable cost is decreasing at its current profit…

A: A competitive firm is a firm that doing business in that market where the large number of buyers and…

Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…

A: No, a perfectly competitive firm would not produce if price were less than the minimum level of…

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: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: What are the characteristics of a perfectively competitive market?

A: There are different market structures with different characteristics.

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: If the firms in a competitive industry incur an economic loss, what happens to supply, price,…

A: If firms earn economic loss, some of them will exit the market. This will decrease market supply,…

Q: In a perfectly competitive market, how do we go from a short run equilibrium to a long run…

A: A perfect competitive market is one there many firms offer homogenous product to a large group of…

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

A: ANS Allocative Efficiency occurs when the total surplus is maximized. Where the total surplus is…

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…