Describe a firm’s decision to shut down and when to exit the market,and explain the difference between these choices

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A: A perfect competitive firm is a firm that operates in a perfectly competitive market.In a perfectly…

Q: Will a Perfectly competitive market display productive efficiently? Why or why not?

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Q: When would a seller possibly decide to exit the industry over the long run? What should product…

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Q: Will a perfectly competitive market display productive efficiency? Why or why not?

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A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Consider the data in the Table below. Firm F operates in a perfectly competitive market. FIRM PRICE…

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Q: Discuss the long-run benefits of running a firm in perfect competition.

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Q: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.

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Q: Given the following information, state whether the perfectly competitive firm will shut down or…

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Q: Why would a firm that incur choose to produce rather than to shut down?

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Q: What are the profits or losses when a competitive firm shuts down in the short run? Group of answer…

A: *ANSWER :-  * OPTION (A) is the correct answer.  TFC = TC - TVC  ( It will realize a loss equal to…

Q: Explain why a fast-food restaurant often displays characteristics of perfect competition.

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Q: Under what conditions would a firm decide to shut down in the short run but remain invested in the…

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Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Discuss the equilibrium conditions for a market under perfect competition.

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Q: Describe a firm’s shutdown decision

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Q: Explain why a perfectly competitive firm would or would not advertise.

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Q: Why don't firms in a competitive market have excess capacity in the long run?

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Q: What price will a perfectly competitive firm end up charging in the long run? Why?

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Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?