In the model of perfectly competitive markets, the market outcome is allocatively efficient because   Question 4 options:   all firms are price takers   all firms break even in the long run   the sum of consumer and producer surplus is maximized   economic profits are maximized   average total cost is minimized for each firm

Q: Which of the following is not an assumption we make about perfectly competitive markets? a)Firms…

A: Perfect competition refers to the form of market in which large number of firms exists.

Q: It is an aspect of microeconomics that helps in analyzing the various types of demand which enables…

A: Demand is an economic theory that refers to a consumer's desire to buy products and services as well…

Q: A perfectly competitive market is in a long-run equilibrium. Prices of variable inputs for the…

A: A competitive firm is most efficient among other market structures.  The assumptions of perfect…

Q: Choose a particular market (for example the beverage industry, Fast food industry etc.) in Guyana.…

A: Choosing a beverage industry Starbucks as an example. Starbucks is working in a monopolistic market…

Q: Describe the behavior of a rational producer in a perfectly competitive market, using the concepts…

A: A rational producer in a perfectly competitive market will keep the price at an equilibrium level…

Q: Which of the following is not true for a competitive market? Group of answer choices Firms can earn…

A: Answer to the question is as follows:

Q: Differentiate between the four market structures on the basis of a) the type of products sold. b)…

A: Perfect competition, Monopolistic competition, Oligopoly, and Monopoly are the four types of market…

Q: Assume the market for tortillas is perfectly competitive. The market supply and demand curves for…

A: Given : The firm is competitive  Supply : P = 5 Q  Demand : P = 120 - 10 Q  Marginal cost : MC = 20q…

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

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: Suppose society is producing a perfectly competitive good or service at the lowest possible cost in…

A: Market share has no effect on prices, businesses can enter or exit the market without any barriers,…

Q: 41. Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive.…

A: At equilibrium price, quantity demanded of a good or service is equal to quantity supplied. There is…

Q: Under certain assumptions, the perfectly competitive market can be used to explain the three…

A: Perfect competition: Perfect competition is a market structure characterized by a large number of…

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: Do you agree with the following statement? Give reasons with a complete explanation for your answer.…

A: Production possibilities frontiers can shift upwards without an increase in resources. This…

Q: QUESTION 1 Given a demand curve of P = 196 - 3Qd and supply of P = 0 + 2Qs, find the optimal level…

A: Demand shows the relation between P and Q that consumers are willing to buy, assuming all other…

Q: Good X is a perfectly competitive market. The equilibrium quantity is 22 million units of good X.…

A: The concept of allocative efficiency refers to the allocation of resources such that the MC of…

Q: Assume the market for tortillas is perfectly competitive. The market supply and demand curves for…

A: Production decisions involve selecting and distributing materials with the goal to optimize…

Q: The hardware industry is perfectly competitive. Currently the price of a hammer is $5 and there is a…

A: Perfect Competition: A perfectly competitive market refers to a market structure where both…

Q: Suppose that the firm operates in a perfectly competitive market. The market price of his product…

A: The perfectly competitive market would result in the large number of buyers and sellers in the…

Q: The graph above shows the long-run equilibrium for a competitive market. Assume that in Saudi…

A: The graph you sent shows a long-run equilibrium for a perfectly competitive market, where price (P)…

Q: In a perfectly competitive market, firms that remain in the market in the long run produce at the…

A: Market structures is essential to analyzing how businesses interact and compete in an economy. It…

Q: Market failure occurs when      A) resources are misallocated or allocated inefficiently. B)…

A: Market failure refers to when the market is in disequilibrium condition because of market…

Q: Given a demand curve of P = 138 - 2Qd and supply of P = 2 + 8Qs, find the optimal level of…

A: The equilibrium refers to economic condition where demand and supply are equal. Such level of output…

Q: The four statements below each describe a different market, highlighting one feature of that market.…

A: Imperfect market A monopoly is a market structure where there is only a single seller in the market…

Q: In the competitive market for a particular good there are two types of producers: Type A and Type B.…

A: In production total cost represents the cost of the input used plus the overhead cost of production.…

Q: In the long run, in a competitive economy, companies use resources until the extra or marginal…

A: (Q) In the long run, in a competitive economy, companies use resources until the extra or marginal…

Q: Consider a market where the consum with no fixed cost and a constant marginal cost perfectly…

A: Given P = 100 – 10q MC = 20

Q: The market for Ramen noodle bowls is perfectly competitive. Market demand is given by P=55-4Q. If…

A: Perfect competition exists because there are many buyers and sellers in the market, everyone sells…

Q: Market demand in the competitive market for cheeseburgers is given as QD = 75-2P Market supply is…

A: Given that, Market demand QD =  75 - 2P Market supply QS = 2P + 15 Marginal cost MC = 3Q Average…

Q: In the model of perfectly competitive markets, the market outcome is allocatively efficient because…

A: Perfectly competitive markets are said to be allocatively efficient. They produce quantities by…

Q: Choose a description that is the least appropriate description of a perfectly competitive market.…

A: A perfectly competitive market happens when all organizations sell indistinguishable items, a…

Q: Suppose a competitive market is comprised of firms that face identical cost curves. The firms…

A: In a competitive market, the dynamics of supply and demand play a critical role in determining the…

Q: Which of the following is NOT a charactersitic of the model of perfectly competitive market? a)…

A: There are a large number of buyers and sellers in a perfectly competitive market and sellers in a…