An increase in the number of suppliers in a perfectly competitive market will result in O All of the previous answers O a decrease in the profits for the existing sellers O a decrease in the price for the existing sellers a decrease in the marginal revenue for the existing sellers O 2 of the previous answers None of the previous answers

An increase in the number of suppliers in a perfectly competitive market will result in O All of the previous answers O a decrease in the profits for the existing sellers O a decrease in the price for the existing sellers a decrease in the marginal revenue for the existing sellers O 2 of the previous answers None of the previous answers

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 32CTQ: Your company operates in a perfectly competitive market. You have been told that advertising can...

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Aseller in a perfectly competițiye market can ncreaso his profit in the short run' by: Oncrcasing his selling priee above the market prica ) Decréasing his selling price so he sells more output O Conducting an effective advertising campaign för his product (đ) None of thë above
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Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 1/2q² Marginal Cost: MC = q where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand D = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50+ 1/1/19 19² 1 29
The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 10 8 MC 1 I I I I ATC MR 30 ++ II II II 45 50 Quantity/time The firm will maximize its profit at a quantity of D units.
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s 1, 12 & 13 Assignment Saved Help Save & Exit Assume a purely competitive increasing-cost industry is in long-run equilibrium. If a decline in demand occurs, firms will Multiple Choice leave the industry, price will fall, and quantity produced will rise. enter the industry and price and quantity will both rise. leave the industry and price and quantity will both rise. leave the industry, price will fall, and quantity produced will fall.
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The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 10 V ATC The firm will receive $ MR Quantity/time The firm will maximize its profit at a quantity of▼ units. D Options: 6, 8, 9, or 10 After choosing the profit maximizing quantity, the firm will charge a price of in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is $ The maximum profit the firm can earn in this situation is How will the situation change over time? Options: 6,8 10, or 24 per unit for this output. O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. O This market is already in long-run equilibrium, and will not change throughout time. O Losses will induce firms to leave…
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Suppose you are in charge to analyze the future price trend of a brand. What do you suggest about the price? What should be the change in it in future for market equilibrium if it is currently at P1 and also explain whether there is a surplus or a shortage in this current market?
If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output.
At a market price of $35.20 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run?