Consider a perfectly competitive firm in the short run. Assume the firm produces the profit- maximizing output and earns economic profits. Which statement is FALSE? Price is equal to marginal revenue. Price is equal to marginal cost. OMarginal cost is greater than average total cost. Price is equal to average total cost. ONone of these options is correct.

Q: In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and…

A: In the short run, a perfectly competitive firm maximizes profit by adjusting its output level to…

Q: In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: fa perfectly competitive firm finds that the price exceeds its ATC, then the firm A) is incurring an…

A: A perfectly competitive market is the one where there are large number of buyers and sellers selling…

Q: Lasguns are produced by identical firms in a perfectly compettitve market. There are 21 firms in the…

A: A short-run competitive equilibrium occurs when, given the businesses in the market, the price is…

Q: In the short run, a perfectly competitive girl will maximize profits ( minimize losses) by producing…

A: Perfect competition is characterized by many sellers and many buyers having perfect information and…

Q: Mink farming is a perfectly competitive industry and all mink farms have the same cost curves. When…

A: Shut Down price: In the short run as the firm faces the total fixed cost And a firm will shut down…

Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: Perfect competition is a market structure in which there are many buyers and sellers. The price is…

Q: The table below displays cost information for a firm operating in a perfectly competitive market.…

A: The total cost of the firm is divided by the fixed cost and the variable cost. variable cost changes…

Q: For a burger seller Marginal, average variable and average total cost curves are attached below:…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) =…

A: In short run a competitive firm will produce that level of output where the price (P=MR) is equal to…

Q: Tomato Farms is selling tomatoes in a purely competitive market. Its output is 25,000 bushels, which…

A: Fixed is the cost that remains same at all levels of output. It does not change as production…

Q: If the firm operates in a perfectly competitive market, and the market price is $25 per unit, what…

A: A seller operating under competitive conditions will sell a level of output where it extricates its…

Q: A profit-maximizing firm is producing where MR = MC and has an average total cost of $4, but it gets…

A: a) Although the firm is operating at MR = MC, the price is less than ATC. Yet a firm produces in the…

Q: The graph below shows cost curves for a perfectly competitive firm. Price/Cost $50 $40 $30 $20 $10…

A: Profits are the income earned after deductions of all types of costs from the revenue. Profits are…

Q: Identify a perfectly competitive firm

A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…

Q: Quantity  Fixed Cost  Variable Cost Total Cost Marginal Cost 10 200 50 250 0 20 200 100 300 5 30 200…

A: In perfectly competitive market, price is constant and it is equal to marginal revenue. Marginal…

Q: A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm…

A: In perfectly competitive market price is constant so it is equal to marginal revenue. At profit…

Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What…

A: Perfect competition is a market structure featuring more number of sellers and buyers in the market,…

Q: Draw the cost curves for a typical firm. For a given price, explain how the firm chooses the level…

A: The firm working in markets that are perfectly competitive deals in homogenous products, and have a…

Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…

A: A competitive firm faces a parallel price line because in a competitive market, the firm is a price…

Q: A perfectly competitive firm has total revenue and total cost curves given by: TR = 800Q TC =…

A: In perfectly competitive market, price is constant. So it is equal to marginal revenue revenue.…

Q: A firm has fixed costs of $40 and variable costs as indicated in the table below. For each level of…

A: "Total fixed cost in the production process does not change with the units produced and remains same…

Q: In the above figure, The cost curves of a typical perfectly competitive curve are show. What will…

A: In a competitive firm due to free entry and exit the firm earns normal profit in the long run.