Competitive firms have all of the following characteristics except: O All of these are characteristics of competitive firms O Many buyers and sellers O Price takers Perfectly elastic demand O Identical products

Competitive firms have all of the following characteristics except: O All of these are characteristics of competitive firms O Many buyers and sellers O Price takers Perfectly elastic demand O Identical products

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 6WNG

See similar textbooks

Related questions

Q: What will most likely occur to the demand for this firm in the long run? O This firm is making zero…

A: In a monopolistically competitive market,when new firms enter consumers switch to their product and…

Q: Assume the market for street food is perfectly competitive. If the price is $6.67 per serving, what…

A: Perfect competition markets are allocatively and productively efficient. It means output is always…

Q: Consider four perfectly competitive firms. Assume that each firm faces a market price of po- Q Q…

A: If perfectly competitive firms are incurring losses at their profit-maximizing level of output, they…

Q: Consider the perfectly competitive market for apples, which is currently in long-run equilibrium.…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Which of the following is not a characteristic of a perfectly competitive market? O zero economic…

A: Perfect competition is a market structure where there are large no of buyers and sellers selling…

Q: Which of the following is true about the long run in a compe industry? There are more firms…

A: The perfectly competitive market is characterized by the presence of a large number of buyers and…

Q: What is the marginal revenue gained when one more unit of output is sold? Oa. The price at which the…

A: Marginal revenue: marginal revenue refers to the addition to the total revenue by selling an…

Q: The demand curve perceived by a perfectly competitive firm O A. shows that such a firm is a…

A: A demand curve shows the amounts of a good that a consumer purcgase at different prices. Having…

Q: The graph shows a perfectly competitive market that was in a long-run equilibrium on demand curve…

A: A. increase; earn a smaller economic profit; new firms will enter.

Q: When price is greater than marginal cost for a firm in a competitive market, O marginal cost must be…

A: Please find the answer below. MARGINAL COST: In economics, the marginal cost is the change in…

Q: A firm is a price taker if it sets its O price based on the demand curve it faces own price, but…

A: Price is determined through market forces of demand and supply in perfect competition. Price is…

Q: What is the relationship between a perfectly competitive firm's marginal cost curve and its…

A: The short-run supply curve of a perfectly competitive firm is nothing but the marginal cost (MC)…

Q: Suppose that the equilibrium price is $10.19 (black line). This firm is earning OProfits O Losses O…

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

Q: Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will…

A: In the perfectly competitive market, demand for a product from a specific firm is very elastic due…

Q: In the short run in perfect competition if P>ATC which of the following will occur? firms will enter…

A: A firm in a perfectly competitive market wants to maximize profits just like any other firm. The…

Q: For a profit-maximizing price-taker firm, a reduction in the price of a good will cause to and the…

A: A perfect market, sometimes known as an atomistic market, is defined by various idealising…

Q: Suppose solar panel manufacturing is an industry subject to significant economies of scale, and…

A: If the demand for solar panel is five times the production there would be excess demand initially.…

Q: A perfectly competitive firm produces at an output at which marginal revenue is less than marginal…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the…

A: In case of Constant Cost Industry, supply curve is flat. The long run supply curve is horizontal. It…

Q: Suppose a firm is in a perfectly competitive market. 10 Price 9- 8+ 4.55 3.5 1 2 3 4 MC 6 ATC AVC 8…

A: There will be an economic profit when price exceeds average total cost; and an economic loss when…

Q: A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it…

A: Answer to the question is as follows:

Q: Perfect competition an efficient outcome because O A. achieves; total surplus is maximized O B.…

A: Efficiency is achieved when there is less and less wastage or very less Deadweightloss(DWL). DWL…

Q: Which describes the firms supply curve for the short run with perfect competition? O The section of…

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

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a…

A: Note:Since there are multiple sub parts of the question, therefore only the first three sub parts…

Q: In a perfectly competitive market, when are economic profits possible? O Long-run O Economic profits…

A: Perfect competition, according to economic theory, occurs when all companies sell the same products,…

Q: A local pizzeria only servers two items: pizzas and sandwiches. An increase in the demand for…

A: A local pizzeria only serves two items, i.e., Pizzas and sandwiches. An increase in the demand for…

Q: In the long run, competition among sellers results in all of the following EXCEPT increases in the…

A: The question directs attention to the long-term outcomes of competitive markets. It pertains to the…

Q: What are the three conditions for a market to be perfectly competitive? For a market to be perfectly…

A: Perfect competition is a market structure in which a large number of sellers sell products in the…

Q: Consider a major producer of liquid soap. Which of the following would not shift its supply curve of…

A: When there is a change in the supply, the supply curve shifts. A rightward shift in the supply curve…

Q: In perfect competition, a firm maximizes profit in the short run by deciding Select one: O a.…

A: In perfect competition , There are various no. of buyers and sellers. There are no barriers to…

Q: Assume that restaurants in aiports rent the space that they occupy and that the restaurant industry…

A: Given : The restaurant industry is competitive, assuming the restaurants in the airports rent the…

Q: Which of the followings is the basic trait of a Perfectly Competitive market? The market has only…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Which of the following best explains why a firm in a competitive price-taker market must take the…

A: A perfectly competitive market is characterized by the presence of a large number of buyers and…

Q: er 11 i Suppose the market for corn is a purely competitive, constant-cost industry that is in…

A: A purely competitive market has many firms in the market producing homogeneous goods.

Q: In the theory of the firm, profit is maximized at a rate of production at which O Economic profit is…

A: The theory of the firm is a work of classical economists like David Ricardo and Leon Walras. It is…

Q: If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, 4 he will…

A: A perfectly competitive firm is the one in which there are a large no of sellers in the market. As…

Question

Competitive firms have all of the following characteristics except:
All of these are characteristics of competitive firms
O Many buyers and sellers
O Price takers
Perfectly elastic demand
Identical products

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Define competitive firms

VIEW

Step 2: Choose the correct answer.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

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

The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on this figure, which of the following statements are correct? 8,000 Price, Marginal cost ($) 0 E Quantity of cars, Q At A, the firm makes positive profits. The firm makes the same profit at B and D. O Profit margin is the same at B and D. O The slope of the isoprofit is zero at D. MC Isoprofit A Isoprofit B AC 100
Price Average total cost AVC Demand Marginal cost Marginal revenue Q Quantity Discuss the firm plotted on the figure. What type of firm do you see?is the firm operating at the optimal point of production? is the firm making a proht? s the firm operating in the short or in the long run?
what is the profit-maximizing output quantity?
he table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that roduces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $2.2 2.17 2.21 25 30 2.00 35 2.45 3.55 4.00 40 2.38 45 2.56 2.85 50 5.50 55 6.00 3.14 60 8.50 3.58 Instructions: In part a, enter your answer as a whole number. In parts b, c. and d, round your answers to two decimal places. a. If the market price of children's mittens is $6.00 per pair, how many palrs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? %24 3.28 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? d. What are Smitten's weekly…
Restaurants offer related but differentiated products to their consumers. In the long run, new restaurants enter the market and imitate the cuisineand atmosphere of successful competitors. Howwould you expect a restaurant to set its prices inthe long run? Describe the relationship betweenprice and average total cost. Does a restaurantearn economic profits?
Help Save & Exit Submit The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) 15 Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $1 20 2.00 1.25 25 2.45 1.49 30 3.55 4.00 1.83 35 2.14 40 5.50 6.00 8.50 2.56 45 2.94 50 3.5 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? 24 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? p..........: d.…
Imagine you own a company STR LLC. You produce homogenous and easily available goods. Explain the type of market you are operating in. Elaborate your pricing strategy where you can earn normal profits. You have to show production costs and revenue in a table at what production levels you manage to earn profits or otherwise make losses. References: • Makowski, L., & Ostroy, J. M. (2001). Perfect Competition and the Creativity of the Market. Journal of economic literature, 39(2), 479-535. Kaldor, N. (1935). Market imperfection and excess capacity. Economica, 2(5), 33-50.
PRODUCTION| 2 8 10 12 14 LEVEL MARKET 3 3 3 3 PRICE ТОTAL INCOME TOTAL FIXED 14 14 14 14 14 14 14 COST ТОTAL 4.5 5.5 6.7 8.2 10 13.25 VARIABLE 25 COST TOTAL COST TОTAL BENEFIT MARGINAL 3 3 3 3 INCOME AVERAGE TOTAL COST Develop the following numerical example of perfect competition, which should add the procedure for calculating the missing costs, income, and profit. Considering the following data: a) Indicate at what level of production the MC is equal to the price, so that the company is perfectly competitive in the short term. 3. 3.
In briefly please..
16 $20 $18 MC АТС i of $16 P = MR $14 $12 AVC $10 $8 $6 $4 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, the firm will earn a Total Profit of: Select one: а. $1,000 b. $1,600 с. $3,200 d. $2,000
Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changes his price to $8. Why? What about the price of $5? What is his profit-maximizing price?
Hand written plzz