Q: How is the PROCESS (steps) of adjustment or transition from short to long term equilibrium in…
A: Answers: Introduction: Perfect competition refers to the market in which there are numerous buyers…
Q: Why firm level demand curve is horizontal and industry level demand curve is downward sloping in a…
A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…
Q: Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech…
A: The perfectly competitive is the type of firm where there are large number of buyers and sellers.…
Q: Question 7 Which of the following statements is not true? Economies of scale means lower…
A: Economies of scale can be defined as the cost advantages which are reaped by the companies when…
Q: Choose a particular market (for example the beverage industry, Fast food industry etc.) in Guyana.…
A: Choosing a beverage industry Starbucks as an example. Starbucks is working in a monopolistic market…
Q: a) Start with a model of the situation before the crisis in Ukraine. Draw a model of a…
A:
Q: Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly competitive…
A: Perfect competition is a market structure where there are many buyers and sellers selling…
Q: Firms in every market structure: Question 24 options: A) will attempt to maximize profits.…
A: Firms in every market structure will attempt and try maximizing their profit. Be it in monopoly…
Q: Profit-maximizing firms enter a competitive market when existing firms in that market have Group of…
A: The structure of a market where there tend to exist various producers that compete with each other…
Q: grocery store in a perfectly competitive market can differentiate its product with respect to…
A: There are many market in the economy with different characteristics , so here we choose the correct…
Q: multiple choice If a typical firm in a perfectly competitive industry is earning economic profits,…
A: Answer: Correct option: 3 (new firms will enter in the long run causing market supply to increase…
Q: an inward shift of the demand curve in the competitive market for paper clips. Using fully labeled,…
A: Answer: Suppose initially the market is at a long-run equilibrium level. Now if the demand falls and…
Q: 56. Agriculture in india is mostly characterized by perfectly competitive market why?
A: Agricultural economics is a branch of economics that focuses on using economic theory to improve…
Q: Question 2 Which of the following firms is the closest to being a perfectly competitive firm? Group…
A: Answer is given below
Q: Suppose total revenue (TR) and total cost (TC) functions of Samsung are following: TR = 175Q – 2.5Q2…
A: Profit maximizing quantity of output is where marginal revenue equals marginal cost.
Q: Which statement about market structure and innovation is true? a. Innovation helps only dominant…
A: Technological advancement is an important factor that helps in the growth and development of a…
Q: An industry consists of 50 firms with equal sales. What is the HHI? a. 50 b. 200 c. 400 d. 800 e.…
A: The Herfindahl-Hirschman Index is an index that is used to measure the size of the firms in relation…
Q: The key characteristic which prevents firms in a perfectly competitive industry from earning…
A: In perfect competition there are large number of buyers and sellers selling homogeneous goods which…
Q: The diagram below depicts the market for smart mobile phones for selected brands. Apple Iphone Price…
A: In a market, the value map is used to define the value of a specific firm in the market on the basis…
Q: evidence of serious competition between firms in an industry? Can you identify two highly…
A: Firms are for-profit business, it has different ownership structures. It has different factors of…
Q: Question 11 A firm that is suffering an economic loss in the short run should continue to operate as…
A: Short run refers to a period of time which is short enough that the firm cannot change its fixed…
Q: What term refers to companies shaping their actions based on what their competitors do? allocative…
A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…
Q: Market structure refers to the characteristics of an industry that define the likely behaviour and…
A: The market is completely competitive if there is no pure competition. The key aspect of a completely…
Q: All of the following are ways by which existing firms can deter the entry of new firms into an…
A: The answer to above is (A) threating to raise prices. When a new firm enters the industry , it faces…
Q: Why do all industries, except pure competition, not reach efficiency? What types of efficiency are…
A: Answer (50) Pure competition is a market situation where : products are homogenous there are a very…
Q: he auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General…
A: Given that the car market in US has features of monopoly market structure while the car market of…
Q: What incentive compensation needed by employees to remain competitive within the industry?
A: The reward in the form of cash paid to employees for the service that they provide is defined as…
Q: The part below (in bold) describes a firm that was an early mover in its market. In light of the…
A: As an early mover is likely to be the basis of a sustainable competitive advantage because the…
Q: Assume that the tuna fishing industry is perfectly competitive. Which of the following best…
A: perfect competition is a market structure where all the firms are selling an identical or…
Q: For a firm operating in a competitive industry, which of the following statements is not correct?…
A: Perfectly competitive market is such a market where there are very large number of buyers and…
Q: Relate opportunity costs to why profits encourage entry into purely competitive industries and how…
A: Opportunity cost is the money that is sacrificed to do a specific economic activity. It is the gain…
Q: The auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General…
A: The monopoly is the market structure which has single seller in the market and the perfectly…
Q: The following in formation is available for a company that operates in a perfectly competitive…
A: A perfectly competitive firm maximizes profit (or minimizes losses), when Price >= MC. The firm…
Q: How will carmakers in the U.S. respond to consumers’ desires compared to Chinese carmakers’ response…
A: In a perfect competition market, there are a large number of buyers and sellers in the market and…
Q: Each of the statements shown is characteristic of a phase in the development of a competitive market…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Discuss/explain the nature and characteristics of various market structures and propose how the firm…
A: 1. Perfect competition, Nature and characteristics: There is an unlimited number of seller and…
Q: Other things equal, which reduces competition in an industry? Multiple Choice An increase in the…
A: An invention concerning a product or a process that's new, involving inventive step and capable of…
Q: What principle explains why tech companies are leaving California for Texas but movie studios are…
A: Perfect Competition refers to the condition of the market of a good or service where all firms sell…
Q: Explain manufacturing firms should use demand leading instead of demand trailing capacity strategy.
A: A lead limit technique (lead request procedure) is a proactive methodology that adds or takes away…
Q: Scenario Competitive? Scholastik Inc. owns the U.S. copyright to a popular book series. It is the…
A: Competitive market structure is also called perfect competition. In long run, firms in perfect…
Q: Name the market structure in which the firms sell products that are similar but not identical
A: Based on different market structures, some markets have homogenous goods being sold by the sellers.…
Q: Please refer to the figure above. The competitive market player will produce ____ units of output.…
A: A perfectly competitive market is produce at a point where price is equal to MC From the figure,…
Q: TC=100+20q+q2 MC=20+q2 assuming perfect competition If the price is $100 & there are 1,000…
A: The perfect competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: How do firms that compete in four different markets structures determine profitability
A: Four different markets structures:- Perfect competition monopoly monopolistic competition Oligopoly…
topic : Industry equilibrium
Question : What determines the number of firms in an industry (a) in the short run, (b) in the long run.
Step by step
Solved in 2 steps
- Microeconomics: Why do firms enter an industry when they know that in the long run economic profit will be zero?In this week’s discussion we focus on market competition and the power of firms to set prices. (a) Along with your textbook reading, review the videos, blog, and articles on market competition. Then respond to the following questions: If all the firms in an industry are charging the same price, is it fair to say that they are engaged in price collusion? To what extent might this be a plausible explanation? Are there any other possible explanations? What type of market structure do you think is more conducive to firms engaging in price-fixing? Why do you think the price-fixing situation in the case described went on for so long? (one paragraph) Click the link to review a recent price-fixing case on bread. (b) In your town or city try to find a local business that appears to enjoy some degree of monopoly power (it does not have to be a pure monopoly: one unique product and one seller). Briefly describe the nature of this business and explain some of the factors that give it monopoly…In this week’s discussion we focus on market competition and the power of firms to set prices. (a) Along with your textbook reading, review the videos, blog, and articles on market competition. Then respond to the following questions: If all the firms in an industry are charging the same price, is it fair to say that they are engaged in price collusion? To what extent might this be a plausible explanation? Are there any other possible explanations? What type of market structure do you think is more conducive to firms engaging in price-fixing? Why do you think the price-fixing situation in the case described went on for so long? (one paragraph) 7 Canadian companies committed indictable offences in bread-price fixing scandal: Competition Bureau | Globalnews.ca https://globalnews.ca/video/rd/1150756931838/?jwsource=cl
- Identify a real world industry that may show either many firms entering or exiting the competitive marketplace in the next few months and explain in microeconomic terms why.Q. Suppose the book-printing industry is competitive and begins in long-run equilibrium. a. Draw a diagram describing the typical firm in the industry. b. Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. What happens to Hi-Tech’s profits and the price of books in the short run when Hi-Tech’s patent prevents other firms from using new technology? c. What happens in the long run when the patent expires and other firms are free to use the technology?Ukraine is one of the biggest exporters of sunflower oil in the world. War between Ukraine and Russia hence significantly impacted the available stock of the sunflower oil in the world’s market. Either sunflower oil or olive oil is an input to manufacture biscuit. Consider that the market for olive oil is in perfect competition and initially at the equilibrium. Explain the impact of the war on the supply, demand, equilibrium on market of olive oil Give a graphical representation
- (1) Use the graph to answer the question below. The quantity is measured in thousands of units. What will this firm decide to do in the long run? A-It will stay in the market because the price is above its AVC at its profit-maximizing output. B-It will leave the market because the price is below its ATC at its profit-maximizing output. C-It will increase its price to point B to earn normal profit. D-It will increase its output until its profit-maximizing output level is equal to B. E-Insufficient data to determine. (2) A dairy farmer is operating in a perfectly competitive market. The market price for milk is between the farmer's average variable cost and average total cost at the profit-maximizing level of output. What will the farmer do? A-Produce more milk. B-Produce less milk. C-Shut down in the short run. D-Operate in the short run and leave the industry in the long run. E-Insufficient information to determine (3) A firm operating in a perfectly competitive market cannot…What happens when more and more firms enter an industry? a) Decline in economic profits b) An increase in the accounting profits c) An increase in price d) A decline in production Answer A В DSuppose the shirts industry is perfectly competitive and begins in a long-run equilibrium. (a) Pluto Company invents a new production process that reduces the production cost. What happens to Pluto Company’s profits and the price of shirts in the short run when Pluto Company’s patent prevents other firms from using the new technology? (b) What happens in the long run when the patent expires and other firms are free to use the technology?
- QUESTION 2 1 points Which of the following statements is correct? A. Economic profits induce firms to leave an industry; profits encourage B. Economic profits induce firms to O C. Economic profits and losses have no D.Normal enter an industry; losses encourage significant impact on the growth or decline of an industry profits will firms to leave firms to leave cause an industry to еxpandExplain why firms would or would not worry about future competition in each market. Explain how this would impact each firms profits.Using the graph answer the following questions: A: At the profit maximizing level of output, what is the firm's total revenue? B: At the profit maximizing quantity, what is the firm's total cost? C: At the profit maximizing quantity, what is the firm's profit? D: Assuming that most firms in the industry have similar costs, describe what happens in this market to bring the industry to a long-run equilibrium (where there are zero profits).
