BackPerfect. Comp Assignment.pdf1. Draw a graph representing a perfectly competitive firm earning an economic profit.(Make sure to show both the firm and the industry graphs)What happens over-time, if many firms are earning economic profits?Is this good or bad for consumers? Explain.2. Now draw a firm operating under perfect competition that is losing money but shouldstill stay open in the short run. (Again, show both the firm and the industry graphs)lendarTo DoA NotificationsM Inbox darsSatWhat happens over-time, if many firms are earning economic profits?27Is this good or bad for consumers? Explain.2. Now draw a firm operating under perfect competition that is losing money but shouldstill stay open in the short run. (Again, show both the firm and the industry graphs)What happens over-time, if many firms are suffering economic losses?Is this good or bad for consumers? Explain.CalendarTo DoNotificationsxoqu W

Since you have asked multiple question, we will solve the first question for you. If you want any…

1. Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to show both the firm and the industry graphs) What happens over-time, if many firms are earning economic profits? Is this good or bad for consumers? Explain.

1. Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to show both the firm and the industry graphs) What happens over-time, if many firms are earning economic profits? Is this good or bad for consumers? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to…

A: Perfect competition occurs when all companies sell identical products, market share does not…

Q: 8. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in…

A: A perfectly competitive market operates at the intersection of market demand and market supply…

Q: Dollars Listen ABC KDE Quantity MC d) (A - B) times E units. ATC AVC MR The above graph shows cost…

A: To determine the profit-maximizing output level, we need information about the cost and revenue…

Q: fer to the diagram to the right which shows the cost and demand curves for a profit−maximizing firm…

A: The perfectly competitive market refers to a market where homogenous products are produced by all…

Q: On the following graph, use the orange points (square symbol) to plot points along the portion of…

A: Cost Curves show the varying levels of costs that get incurred in the production process of goods.…

Q: Question 1c. Why does price equal marginal revenue for the perfectly competitive firm? What is the…

A: The perfect competition is the market condition in which there are many buyers and sellers in the…

Q: Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? c. Sketch…

A: Firms in a perfectly competitive market face a perfectly elastic individual demand curve as they…

Q: 1. Consider market adjustment from the short-run to the long-run under a perfectly competitive…

A: Since you posted multiple questions, we will provide you the answer of first question. If you want…

Q: The graph below shows the costs and revenue curves for Dollar-Daze, a typical profit-maximizing firm…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Which formula represents the profits for a firm? (check all that apply) (AC=average cost,…

A: Total cost is the overall cost incurred in the course of production of the good.

Q: Show in a graph a situation when a competitive firm will minimise loss in the short run. Why will…

A: A situation when a competitive firm is making loss in the short run Here, MC= marginal cost MR =…

Q: d. What is the firm's total variable cost at this level of output? e. What is the firm's fixed cost…

A: A perfectly competitive market is a theoretical market formation where all companies offer…

Q: Briefly explain why the following statements are either TRUE or FALSE: a. Perfectly competitive…

A: A perfectly competitive firm is one that deal has to compete with many firms to sell a specific…

Q: What two rules does a perfectly competitive firm apply to determine its profit maximizing quantity…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 4. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: Perfectly competitive market consist of large number of buyers and sellers, selling homogenous goods…

Q: A purely competitive wheat farmer can sell any wheat he grows for $20 per bushel. His five acres of…

A: a) Acre That Acre's yield That Acre's revenue TR MR 0 - - - - 1 1000 20000 20000 20000 2…

Q: 3. In competitive markets economic profit becomes zero in the long-run. However, it is also possible…

A: In competitive markets,economic profits become zero in the long run but accounting profit can be…

Q: 7- Using graph show that in a perfect competition market in the short-run, how a firm facing a…

A: The theoretical model of perfect competition serves as a benchmark for studying market behavior,…

Q: In a perfectly competitive market you can expect the following changes to occur in long run if firms…

A: The structure of a market where there are a large number of sellers selling homogenous products and…

Q: 5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high…

A: In the long run, many new firms enter the perfectly competituve industry as they are attracted by…

Q: run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially…

A: Demand curve represents quantity demanded corresponding to different price level.Demand curve is…

Q: 4. Short-run profit maximization or loss minimization for a perfectly competitive firm Suppose that…

A: Perfectly competitive market is a type of market in which homogeneous goods, that are perfectly…

Q: 1.What is the profit maximizing condition for Perfect Competition in the long-run?

Q: Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on…

A: 1. The firm is operating at the point where the marginal revenue equals the marginal cost in the…

Q: 6.) The figure below shows Average Cost, Demand, Marginal Cost and Marginal Revenue curves for a…

A: Here, the given graph represents demand curve, marginal revenue curve, marginal cost curve and…

Q: Use the table below to answer the following questions: Costs Revenues Price ($) Total Quantity…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 3. Apples are produced in a perfectly competitive industry. Assume that there are 100 identical…

A: Part (a) In case of perfect competition , the supply curve is given by marginal cost curve above…

Q: 3. Profit maximization using total cost and total revenue curves Suppose Sam runs a small business…

A: This can be defined as a concept that shows the cost incurred in the production process of a…

Q: 1. Consider the following graph: Price (dollars per cup) $6.00 MC ATC 3.50 Profit 2.50 Demand 0 1 2…

A: Consider the graph given below:

Q: What is the meaning of 'acceptable loss' for a perfectiý competitive firm ? Draw a graph and…

A: Answer in Step 2

Q: 1. Assume you have a perfectly competitive market with two types of firms. The only difference…

A: A perfectly competitive market is a market structure that represents a highly competitive and…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: 1. Define market power and explain why firms in a perfectly competitive market have none.

A: A market is any place where two or more groups can meet to involved in an economic transaction—even…

Q: Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken…

A: important definition: The short-run is an idea that expresses that, within a specific period in the…

Q: Lise the blue paints (circle symbal) to plot total revenue and the green points (triangle symbal) to…

A: The correct answer is given in the second step.

Q: 1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold…

A: We are going to use profit maximisation method for perfectly competitive market to answer this…

Q: 7. Working with Numbers and Graphs Q The following graph illustrates the demand and marginal revenue…

A: The total cost signifies the overall expenditure incurred by an individual or a firm to produce a…

Q: 4. Why does a firm in perfect competition produce the quantity at which marginal cost equals price?…

A: Perfect competition refers to a market structure where the abundance of buyers and sellers who owns…

Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…

A: Perfect competition this is a type of a market structure.

Q: 4. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: The markets are considered to be of utmost importance for the proper functioning of the economies.…

Q: 5. Profit maximization and shutting down in the short run The following graph plots daily cost…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Question

100%

Back
Perfect. Comp Assignment.pdf
1. Draw a graph representing a perfectly competitive firm earning an economic profit.
(Make sure to show both the firm and the industry graphs)
What happens over-time, if many firms are earning economic profits?
Is this good or bad for consumers? Explain.
2. Now draw a firm operating under perfect competition that is losing money but should
still stay open in the short run. (Again, show both the firm and the industry graphs)
lendar
To Do
A Notifications
M Inbox

dars
Sat
What happens over-time, if many firms are earning economic profits?
27
Is this good or bad for consumers? Explain.
2. Now draw a firm operating under perfect competition that is losing money but should
still stay open in the short run. (Again, show both the firm and the industry graphs)
What happens over-time, if many firms are suffering economic losses?
Is this good or bad for consumers? Explain.
Calendar
To Do
Notifications
xoqu W

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Sub : EconomicsPls answer very faast.I ll upvote. Thank You
4. Sketch the graph of the long run supply curve and discuss the process behind. How does this affect the marginal cost and the the equilibrium in perfect competition. Since the firms are price takers, is it possible for all to have the same marginal cost?
5. Restaurants offer related but differentiated products to their consumers. In the long run, new restaurants enter the market and imitate the cuisine and atmosphere of successful competitors. How would you expect a restaurant to set its prices in the long run? Describe the relationship between price and average total cost. Does a restaurant earn economic profits?
8. Short-run and long-run effects of a shift in demand Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 200 million cans per year. Suppose the Surgeon General issues a report saying that eating tuna is bad for your health. The Surgeon General’s report will cause consumers to demand ______ tuna at every price. In the short run, firms will respond by ____. Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General’s report.
Please answer fast please arjent help
Sub : EconomicsPls answer very faast.I ll upvote. Thank You
7. Use the graphs below to answer the following questions. Market a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? Markat c. Sketch on the graph and explain what happens to bring this market to long run equilibrium d. is the firm making an economic profit or loss? e. Will firms enter or exit this market? MC ATC Firm MR MC ATC age 1 of 3 -MR f. Sketch on the graph and explain what happens to bring this market to long run equilibrium.
1. Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost.
Calculate Jacques's marginal revenue and marginal cost for the first seven teddy bears he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 2 3 4 5 7 8 QUANTITY (Teddy bears) Jacques's profit is maximized when he produces , which is teddy bears. When he does this, the marginal cost of the last teddy bear he produces is than the price Jacques receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is s , which is than the price Jacques receives for each teddy bear he sells. Therefore, Jacques's profit-maximizing quantity corresponds to the intersection of the curves. Because Jacques is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per teddy bear)