You witnessed new firms entering a competitive market. What can you infer for the existing firms in that market?

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: Explain how the long-run equilibrium in a perfectly competitive industry achieves 'allocative…

A: When profit-maximizing companies in perfectly competitive markets combine with utility-maximizing…

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: 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: Identify the defining characteristics of a competitive market.

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

Q: How would you describe the demand curve for the purely competitive firm? For the industry?

A: Purely competitive firms are characterised by being price takers where decisions are made…

Q: Why are perfectly competitive markets considered economically efficient?

A: There are several forms of the market that exists in the real world out of which perfect competition…

Q: When will a firm enter a competitive market?

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

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

A: There are different market structures with different characteristics.

Q: Under what conditions will a firm exit a market? Explain theoretically and graphically.

A: Short‐run supply curve- The short‐run supply curve of the firm is the portion of its marginal cost…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: competitive market

A: A. If the price = AC = MC, then the market is competitive and incurring economic loss.

Q: Jackson Hardware, a firm in the perfectly competitive custom hardware industry, asks you for your…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: What are the options available to a firm when the market demand exceeds capacity?

A: Here's a set of features that assist companies in proactively addressing excess demand and…

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

A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…

Q: All buyers in a perfectly competitive market set prices to compete in their market? is it true or…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: If new technology in a perfectly competitive market brings about a substantial reduction in costs of…

A: The term "perfect competition" refers to a fictional market structure in which all suppliers are…

Q: What happens when a perfectly competitive market is in equilibrium?

A: A perfectly competitive market is a market structure in which there are many buyers and sellers. The…

Q: When will a firm neither enter or exit a competitive market?

A: In competitive market firms are free to enter and exit.

Q: Explain how market competition affect the mark –up in price setting and the fraction of the marginal…

A: If there is market competition then setting mark-up price will be affected a lot. Let's understand…

Q: What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit.…

A: The firm is an individual unit of the business which produce and sell the product in the market. The…

Q: Explain how economics make profit or loss when firms are perfectly competitive.

A: In a competitive market there are large number of firms producing similar and identical products…

Q: What are the Characteristics of a Purely Competitive Market?

A: Characteristics of a Purely Competitive Market:   The Purely competitive market is the market…

Q: Is the perfectly competitive market model realistic? If not, why do we want to study the perfectly…

A: Perfect competition is a market model that assumes a large number of firms produce identical goods…

Q: Do you expect firms in perfectly competitive industries to have high profits in the short run? Why…

A: The perfectly competitive market is a form of market where unlimited no of buyer and seller exist,…

Q: equilibrium

A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…

Q: Why is it said that they are "price takers" and unable to influence the market price? If firms in…

A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…

Q: List the requirements for a perfectly competitive goods market.

A: For a particular production process, there has to be some factors of production available. For…

Q: Outline the characteristics of a perfect competition market that makes it different from an…

A: "In an economy there are different market structures. Market structure depicts how various…

Q: When is it the right time when a firm will enter a competitive market?

A: A competitive market is considered as one where firms have no opportunity to deviate from market…

Q: Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to…

A: When perfectly competitive markets combine with utility-maximizing buyers, the resulting quantity of…

Q: What are the five features of a perfect market competitive?

A: There are many market structures in the economy. Some of them are, perfect competition, monopoly,…

Q: What are the requirements for a perfect competition market?

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: Draw a long-run supply curve for a competitive market with identicalfirms, and describe its…

A: The long‐run market supply curve is found by examining the responsiveness of short‐run market supply…

Q: Can you think of a product that meets at least most of the criteria required for a perfectly…

A: Perfectly competitive market refers to the market which has been characterized by the presence of…

Q: List and explain the importance of each of the five characteristics of purely competitive markets.

A: It is a market circumstance where there is an enormous number of seller of an item which can't be…

Q: Analyze the likely effects of a perfectly competitive market on price, quality, and innovation of…

A: A perfectly competitive market is the one with high degree of competition as many sellers offer…

Q: Using the tools of economic analysis that you learned, analyze the behavior of the enterprise…

A: Introduction Perfect competition is a market where large no. of firms producing homogeneous products…

Q: the market price in a competitive industry were above its equilibrium level, what would you expect…

A: In a competitive market there are large number of firms producing similar and identical products.

Q: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…