If the firms in a competitive industry incur an economic loss, what happens to supply, price, output, and economic profit in the long run? also please provide a scenario. thank you.

Q: In the long run, when there are economic losses, firms leave the industry, which will decrease the…

A: In competitive markets, firms operate with the objective of maximizing their profits. However, it is…

Q: What would you expect to happen to these profit opportunities in the long-run? Hint: you are not the…

A: Purchasing Power Parity (PPP) is an economic theory and exchange rate regime that relates the…

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

A: A perfectly competitive market is the one where there are a large number of buyers (consumers) or…

Q: A capitalist interested in the California plum market has asked you for an analysis.  The capitalist…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: in short run even if it makes negative profit. Use well labeled

A: A competitive firm may incur losses in the short run(SR) as there are some fixed cost(FC) in the…

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run? Would…

A: A market will be perfectly competitive when a larger group of suppliers serve identical or…

Q: If TC=288-11Q + 2Q2 in perfect competition how much will each individual firm produce in the…

A: Perfect Competition is a market situation where there are large number of buyers and sellers selling…

Q: if TC = 144 - 11Q+Q² in perfect competition how much will each individual firm produce in the…

A: A Perfectly Competitive firm maximizes profit by producing output at a firm where Price is equal to…

Q: A) Assume that initially the market was in long run equilibrium with Price Po, and Qo. Illustrate…

A:

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: der perfect competition, firms profit in the long run will be abnormal profits.

A: A firm's profit is maximized profits in a perfectly competitive market Where marginal revenue (MR)…

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

A:

Q: What type of product by individual firms (none, total, some etc) are in a perfect competition and…

A: Perfect competition is a market structure in which all producers and consumers have complete and…

Q: Assume that the plum market has lots of different farms.  They are producing pretty much the same…

A: A perfect competition is called as the ideal market structure because; in this structure of market…

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

A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…

Q: D) What will happen to the industry in the (new) long run? Please Illustrate your answer and explain…

A: No perfectly competitive firm acting alone can influence the market cost. Notwithstanding, the blend…

Q: Would independent trucking fit the characteristics of a perfectly competitive industry? and why?

A: A perfectly competitive market is where there are many numbers of buyers and sellers, with…

Q: Identify a real world industry that may show either many firms entering or exiting the competitive…

A: In economics, a competitive marketplace refers to a market structure characterized by a large number…

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: Assume that the plum market has lots of different farms.  They are producing pretty much the same…

A: A perfect competition is called as the ideal market structure because; in this structure of market…

Q: Consider wheat farmers in a developing country. Farmers/farms are identical (i.e. they have the same…

A: A perfectly competitive industry is a theoretical market structure characterized by a large number…

Q: Why would a firm that incurs losses choose to produce rather than shut down? Why could this choice…

A: In short run firm exhibits return to factor where only one factor is variable and another factor is…

Q: Perfect Competition:  What are the key features of a perfectly competitive market?   Many buyers and…

A: Question 1 is only answered. Post the remaining question again.

Q: How do perfectly competitive firms make output decisions. Discuss in detail.

A: In a perfectly competitive market structure there exists a large number of buyers and sellers of the…

Q: If all assumptions of perfect competition hold, why would firms in such an industry have little…

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

Q: Assume that the plum market has lots of different farms.  They are producing pretty much the same…

A: A theoretical market structure is referred to as a perfect competition model. There are no…

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: There is no incentives to innovate in a perfect competition market. Do you agree? Explain.

A: When talking about perfectly competitive market, it is the place with a large number of buyers and…

Q: The equilibrium of a competitive industry is:   A neither efficient nor equitable   B equitable…

A: A competitive industry is one with many sellers and many buyers. In this market, a large group of…

Q: MC ATC D f g MRh j Output Dollars

A: We have downward slope kinked demand and marginal revenue.

Q: What happens when a competitive industry begins to suffer losses because the demand for its output…

A: Companies can only generate short-term profits or losses in a totally competitive market. Because an…

Q: Assume that the plum market has lots of different farms.  They are producing pretty much the same…

A: A perfect competition is called as the ideal market structure because; in this structure of market…

Q: Consider two perfectly competitive industries, A and B, both operating in a state of long-run…

A: There are 2 perfectly competitive industrie's A and B.There is constant returns to scale for both…

Q: Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry,…

A: The perfect competition is a market structure which is characterized by the presence of a large…

Q: List the conditions that must exist for a firm to make economic profits over the long run

A: In order for a firm to make economic profits over the long term, the following situations need to…

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…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?