The business shown in the graph below operates in a perfectly competitive market. An example of a price where profit is greater than zero is:

Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost structure of the typical ice cream producer is as follows. Average total cost is equal to 50 ATC(Q) = +;Q, average variable cost is equal to AVC(Q) Q, and marginal cost is equal to MC(Q) = Q. How many ice cream cones will each producer sell in a long-run equilibrium in the market for ice cream?

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm’s demand curve? Show it on a graph and label the axes showing P and Q

In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX  operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What level of output should the firm produce? Hint: Set P = MC and solve for Q. Use a graph to show your answers as well

The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has chosen the output level maximizing its profit. Consider the level of profits being earned here, and what will happen over time. What will happen in the long run? Note that the horizontal demand curve, D1, is also equivalent to marginal revenue and price.      Group of answer choices The market price will increase causing economic profits to increase Demand will increase causing economic profits to increase The market price will decrease until economic profit is zero

Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.

Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be allocatively efficient.

You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $8  Market price = $13  Quantity MC ($) 1 10 2 8 3 9 4 11 5 14 6 18 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much?

A competitive firm's supply curve is identical to its marginal cost curve. True or false? Briefly explain.