Q: Determine and explain the profit maximization output of a perfectly competitive firm.
A: Perfect competition is a competition where both buyers and sellers have perfect information about a…
Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…
A: In a perfectly competitive market, there will be a large number of sellers, which means that a…
Q: Can a perfectly competitive firm set its own market price?
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…
A: Perfect competition: Under the perfect competition market, the price is decided by the demand and…
Q: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…
Q: Why is the marginal revenue of a perfectly competitive firm equal to the market price?
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: A perfectly competitive firm does not increase its quantity of output without limit, even though it…
A: Answer: Introduction: A perfectly competitive firm is a price taker. In perfect competition, firms…
Q: must each perfectly competitive firm be in equilibrium if the industry is in the long-run…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: In the short run if a perfectly competitive firm finds itself operating at a loss, it will
A: To find : For a perfect competitive firm in short run if it find itself operating loss what will…
Q: Would the all perfectly competitive market 's marginal cost curve equal to supply curve
A: Market structure is a term used in economics to describe how different industries are classified and…
Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…
A: No, a perfectly competitive firm would not produce if price were less than the minimum level of…
Q: Why do you think a firm in a perfectly competitive industry does not have market power?
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: Show and explain how the short run supply curve of the perfectly competitive firm is derived.
A: in a perfectly competitive market there are large number of firms producing similar and identical…
Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?
A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.
Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?
A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…
Q: If the price of a product produced by a perfectly competitive firm falls below the average total…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: In the short run, a perfectly competitive firm should continue to produce as long as it can cover…
A: In the short run, a perfectly competitive firm should continue production till price per unit is…
Q: When will a firm neither enter or exit a competitive market?
A: In competitive market firms are free to enter and exit.
Q: The long -run supply curve for gem diamonds is positively sloped because increases in diamond output…
A: In the perfect competition,products are identical. If people no longer want to buy diamond rings…
Q: Is it true that a firm in a perfectly competitive market will never be able to earn positive…
A: There are different types of market which are broadly grouped as: Perfect competition and Imperfect…
Q: If Conagra is a competitive firm, it will never operate at an output where its average total cost…
A: Perfect competitive firm is the firm which work in the industry where number of firms are working…
Q: The graph shows the cost curves for a perfectly competitive firm. If the market price of the product…
A: A perfectly competitive market is where there are large number of buyers and sellers. The price of…
Q: Do you expect firms in perfectly competitive industries to have high profits in the short run? Why…
A: The perfectly competitive market is a form of market where unlimited no of buyer and seller exist,…
Q: Which of the following is true for a perfectly competitive industry?
A: option 3 is rhe correct answer The firm in industry produce standardized products It's dentical…
Q: equilibrium
A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…
Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…
A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…
Q: Why is the marginal revenue of a perfectly competitive firm equal the market price?
A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…
Q: For a perfectly competitive firm, what is the relationship between Price and Marginal Revenue?
A: For a perfectly competitive firm price is equal to marginal revenue
Q: In the long-run equilibrium of a competitive market with identical firms, what are the relationships…
A: please find the answer below.
Q: Graphically show how the profit-maximizing level of output is determined for the perfectly…
A: Perfect competitive firm is a price taker and can sell any quantity of commodity at the market…
Q: Suppose that a firm sells its output in a perfectly competitive output market. If the price at which…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: In a perfectly competitive market, please compare the short run and long run prices in an increasing…
A: Perfect competition refers to the market structure where there are a large of number of buyers and…
Q: Refer to the above graph for a purely competitive firm in the short run. What minimum output level…
A: In order to answer this question, it is imperative to understand the concepts of breakeven and…
Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…
A: In perfectly competitive market, there are large number of firms selling identical goods.
Q: Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: A perfectly competitive firm is making a loss if
A: We have to find a perfectly competitive firm is making a loss.
Q: Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the…
A: A perfect competition(PC) market is one with many consumers and sellers producing identical…
Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…
A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…
Q: Does a competitive firm’s price equal its marginal cost in the short run?
A: A competitive firm is one that produces and sells output in the market with many sellers who offers…
Q: What is the short run Supply Curve for a competitive firm?
A: In perfect competition, the short-run supply curve is the marginal cost curve (MC) at and below the…
Q: Question When a perfectly competitive firm is at the profit maximizing output level what will be the…
A: Perfectly competitive market: In a perfectly competitive market structure, there exists a large…
Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ?
A:
Q: What are the characteristics needed for a perfectly competitive market?
A: In a perfect competitive market, there is a number of buyers and sellers, selling similar products.…
Q: At the profit-maximizing output level, what will be the relationship between the perfectly…
A: A profit-maximizing output level is when that gives highest returns to the firm as any change in…
Q: How would you draw a firm graph from a perfectly competitive constant cost market in the short run…
A: A constant cost market means that the cost in the industry remains constant. This is due the feature…
How would you describe the demand curve for the purely competitive firm? For the industry?
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Solved in 2 steps
- why does price equal marginal revenue for the perfectly competitive firm? what is the relationship to the demand curve for the firm?What are the characteristics of a perfectly competitive industry?In the long run, perfectly competitive firms make zero economic profit. If this is the case, why does the firm even bother producing? Why not exit the market completely?