Consider the perfectly competitive market for steel, which is in long-run equilibrium. Now the demand for cars, for which steel is an essential input, decreases. As a result, we would expect that in the market for steel   Profits will increase in the long-run Firms will enter the market in the short-run The quantity produced by the individual firm will increase in the short-run. Profits will decrease in the short-run

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

Q: Firms in a perfectly competitive market are said to be “price takers”—that is, once the market…

A: In perfect competition, there are a large number of buyers and sellers dealing with homogeneous…

Q: Assume the purely competitive market is in long-run equilibrium. For some reason market demand…

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

Q: There are two restaurants on Bloor selling Ramen noodle bowls - Ramentastic and Best Ramen. They are…

A: Supply is the quantity that producers manufacture for the purpose of selling in the market.

Q: Malaysia is the world's largest producer of rubber gloves. The Rubber gloves industry is perceived…

A: Short run refers to a time period in  which at least one factor of production is fixed, while other…

Q: There are 240 firms of type A and 180 firms of type B in a perfectly competitive market. On one…

A: Equilibrium in the competitive market is reached where quantity demanded is equal to quantity…

Q: Consider the following perfectly competitive market for oranges:   Qs = 5P   Qd = 60 – 5P…

A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

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

A: In a perfectly competitive market, firms can just experience benefits or misfortunes in the short…

Q: firms are making a positive economic profit, what happens in the market in the long run? Place the…

A: We need to put the given statements in the correct order. Positive economic profits means revenues…

Q: Consider the competitive market for ruthenium. Assume that no matter how many firms operate in the…

A: The supply curve shows the range of quantities that a producer is willing to provide to the market…

Q: Consider a firm's short-run and long-run supply curves, pictured below. In the short run, one of the…

A: The marginal cost (MC ) refers to the rise in production costs calculated by the production of…

Q: The market for paperback detective novels is perfectly competitive. Market Supply is given by…

A: Given  Market supply function: P=5+3Q            ... (1) The marginal cost of the last unit sold is…

Q: In the long run equilibrium of a competitive market, the number of firms in the market adjusts until…

A: All firms get only normal in the long run under the perfectly competitive market. The super normal…

Q: Suppose you are a seller in a perfectly competitive market, and you are not happy with the existing…

A: Perfect competition refers to the competition wherein the firms in the market produce and sell…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: TC=712+q2Now,AC=TCqAC=712q+q

Q: In the short run, each firm experiences a loss of $

A: We know , Profit = TR - TC  TR = Price * Quantity TR = 100 *50 TR = 5000 ATC = TCQ TC = ATC * Q  TC…

Q: Gulliver tells the citizens of Lilliput that in a perfectly competitive market the following…

A: The amount of items that consumers are willing to purchase at a specific price and for a specific…

Q: An arugula store in a perfectly competitive market was in a long-run equilibrium. Then, the…

A: Suppose the arugula store in a perfectly competitive market was in long-run equilibrium at point A.…

Q: Cronos Corporation of Kingston, Ontario produces keyboards for computers in a perfectly competitive…

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

Q: Suppose that each firm in a competitive market has the following cost structure: TC=100+q². MC=2q…

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Q: The demand curve and supply curve for carpet cleaning in the local market are currently as follows:…

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

Q: Consider the perfectly competitive market for rice, that is in long-run equilibrium. An emigration…

A: Here, it is given that the market for rice is a perfectly competitive market and operates in the…

Q: A market is at long-run equilibrium of P* = $194 and Q* = 76800 units. All firms in the market are…

A: Firms in perfect competition are price takers and accept the market price as given. They charge P=…

Q: Henry bakes loaves of bread, which he sells for $5 each. He is considering purchasing additional…

A: The market is competitive so, the price of good is given and equals to $5. MP(L=2) = TP(L=2)-TP(L=1)…

Q: The market for paperback detective novels is perfectly competitive. Market Demand is given by…

A: (Q) The market for paperback detective novels is perfectly competitive. Market Demand is given by…

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

A: A perfectly competitive market equilibrium occurs at the intersection point of the market demand and…

Q: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…

A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…

Q: Consider a perfectly competitive market characterized by a market supply equal to QS=32*P and a…

A: We have, market supply equal to QS=32*P and, market demand equal to QD=400-8*P. Equilibrium stage…

Q: Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms.…

A: A market with multiple producers and consumers is known as perfect competition. There are no…

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: Under perfect competition, an individual firm is a price taker in the market. All firms sell a…

Q: If a perfectly competitive market is in long-run equilibrium, then the market is:   productively…

A: Perfect competitive firm is the one which contains a lot of sellers, each of which sells the same…

Q: The following graph plots daily cost curves for a firm operating in the competitive market for demin…

A: In economics, particularly general equilibrium theory, a perfect market, also called an atomistic…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 18 firms in…

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

Q: The following table gives information about a firm’s short-run cost function in a perfectly…

A: The perfect competition is a market where a large number of sellers sells identical or homogenous…

Q: Glowglobes are produced by identical firms in a perfectly competitive market. There are 22 firms in…

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

Q: For a perfectly competitive firm to operate and produce an output level in the short-run, the firm's…

A: A perfectly competitive market is a price taker as there are many firms in the market and no firm…

Q: The following diagram shows the market demand for titanium. Use the orange points (square symbol) to…

A: We are using market equilibrium concept in the long run to answer this question.

Q: Avocados have been proven to bring many health benefits if consumed regularly. Many others including…

A: Economic profit, also known as pure profit or supernormal profit, is a measure of a firm's…

Q: Consider a hypothetical market for milk. The market is perfectly competitive. All else equal, what…

A: "Market equilibrium occurs at a point where market demand equates market supply."

Q: na perfectly competitive market demand function of a good is Q" = -30P+2250 and supply function is…

A: Given  Perfectly competitive market.  Demand function = Qd = -30P + 2250.  Supply function = Qs =…

Q: In Problem 5, the market demand decreases and the demand schedule becomes: If firms have the same…

A: The demand refers to the desire of the customer to purchase a particular quantity of the commodity…

Q: The following diagram shows the market demand for titanium. Use the orange points (square symbol) to…

A: Demand refers to the quantity of a particular good or service that consumers are willing and able to…