If a perfectly competitive market is in long-run equilibrium, then the market is:   productively efficient only.   neither productively nor allocatively efficient.   both productively and allocatively efficient

Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…

A: Given values: The market price in the short run = $45

Q: The following graph shows the daily cost curves of a firm operating in a perfectly competitive…

A: In perfect competition, There exists a large no. of sellers and buyers The firm produces where the…

Q: The graph shows the market demand and supply curves for semiconductor chips, and assume it to be a…

A: In a perfectly competitive market, there is free entry and exit for the firms. There are no barriers…

Q: The market for paperback detective novels is perfectly competitive. We have two types of book…

A: Given Information Supply curve for Small Press publisher's    P=76+5Q.  Large Press publisher's…

Q: In an effort to increase long run supply of output in a market, the government decides to implement…

A: Production theory analyzes how firms recruit and combine factor inputs to produce final goods and…

Q: Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a…

A: If CEQ announces that the chemical in tuna helps to prevent from spreading, then the consumer will…

Q: In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that…

A: The profit of a firm can be calculated by subtracting the total cost of producing a good or service…

Q: What determines the slope of the Market Supply Curve over the long run? Discuss some reasons why it…

A: The market supply bend/curve is an upward sloping bend portraying the positive connection between…

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: A firm in a perfectly competitive market uses only workers to produce output. The relationship…

A: Answer: Given, Wages (variable cost) = $100 per worker Fixed cost = $500 (a). The formula to be…

Q: table shows some of the costs of production for Marie's Fortune Cookies. The fortune cookie market…

A: A perfectly competitive firm sets its profit-maximizing level of output at a point where the price…

Q: What assumptions in the perfectly competitive market can be used to explain the three conditions…

A: In a perfectly competitive market, several assumptions are made to analyze the conditions for…

Q: Which market is most likely to be a competitive market?   Multiple Choice   the market for fiber…

A: The market is competitive when there are many producers selling products to the consumers. No single…

Q: n the short run, at a market price of $20 per candle, this firm will choose to produce candles per…

A: Profit Maximization refers to the process taken up by the firms to make sure that the best output…

Q: Farmer Brown grows cotton. The average total cost and marginal cost of growing cotton for an…

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

Q: Explain how a firm in a competitive market identifies the profit-maximizing level of production.…

A: A competitive market is a type of market structure where numerous buyers and sellers interact.…

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

A: The equilibrium is established when the Market Demand is equal to Market Supply. It would be the…

Q: 90 80 ATC 70 60 50 40 30 AVC 20 10 MC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of…

A: In a competitive industry there are large number of firms producing identical good thus acting as a…

Q: Suppose a corn dog stand market is perfectly competitive and in long-run equilibrium. One day, the…

A: Supply refers to the amount of goods that producer willing to and able to produce at particular…

Q: ) There must be perfect information, so that buyers and sellers know everything they need to make ar…

A: DWL is the loss in social welfare due to market power.

Q: Assume the market for oil is perfectly competitive, with the following market demand and supply…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

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

A: Perfectly competitive market- It is a market where there are large numbers of buyers and sellers and…

Q: Why can most markets be described as reasonably competitive rather than perfectly competitive?…

A: In economic theory, perfect competition arises when all the firms are selling the identical items,…

Q: What are the four conditions of a purely competitive market?

A: In a purely competitive market, also known as a perfectly competitive market,There are four key…

Q: Suppose that the market for dress shirts is a perfectly competitive market. The following graph…

A: Perfectly competitive market is a type of market in which homogeneous goods, that are perfectly…

Q: In the Tong run, some firms wili respond by Shift the demand curve, the supply curve, or both on the…

A: Equilibrium price= $5 Equilibrium quantity= 150

Q: Suppose cowboy boots and leather vests are complements. If the price of cowboy boots increases…

A: Supply curve shifts left if supply side factors experience a negative shock, like increase in input…