In the short run, a perfectly competitive firm Select one: O a. can earn a small economic profit while being shut down. O b. incurs an economic loss if it shuts down. O c. does not consider total revenue in its shut down decision. O d. shuts down if it incurs any economic loss.
Q: If the current equilibrium price in the pencil market is $1, how many pencils will Frances produce,…
A: Perfect competition is the market form which is characterized by a large number of buyers and…
Q: 12 11 10 9 8 7 6.36 4.5 4 3 1 2 3 Select one: MC $1 ATC AVC The firm's short-run supply curve is its…
A: The perfectly competitive market refers to the market where all firms are price taker only. Market…
Q: The accountants hired by Forever Fitness have determined total fixed cost to be $75,000, total…
A: Total Revenue is the product of price and quantity. Total cost is the sum of total fixed cost and…
Q: In a long-run competitive equilibrium, a restaurant owner who is just willing to continue operations…
A: When we talk about a perfect competitive market structure, we're talking about a market system where…
Q: Perfectly competitive firms maximize profits by choosing the profit-maximizing output level. They…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: A perfectly competitive firm will shut down rather than produce if its اختر أحد الخيارات .a. price…
A: Perfect competition is a market structure in which a large number of sellers sell homogeneous…
Q: Fill in the following table for a firm in a perfectly competitive industry. Quantity Price TR TC…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: Consider a perfectly competitive firm with marginal cost (MC) and average total cost (ATC) given in…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: igure: Unicycle Production Costs) If the current price is $20 in this perfectly competitive…
A: A perfect competitive firm is a price taker and can sell any quantity of the commodity at given…
Q: is given by: TC TR 9,800 5,600 2,100 300 800 1,400 Output (Q) Select one: O A. $7 OB. $10 OC. $8 OD.…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: price 4 MC AVC ATC d=MR q e profit-maximizing level of output and mark it q*. Shade in the area of…
A: Profit maximising level condition - 1) Marginal revenue (MR)= marginal Cost (MC) 2) MC should be…
Q: Figure 7-5 shows cost and revenue curves for a perfectly competitive firm. The short-run Figure 7-5…
A: A marker is perfectly competitive when there are many firms producing identical goods.
Q: es The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly…
A: A large number of sellers and buyers with homogeneous products are selling in the markets described…
Q: QUESTION 16 Jose's restaurant operates in a perfectly competitive market. At the point where…
A: In the perfectly competitive market, if a firm is producing at a level where MR equals MC, this…
Q: The minimum price at which a firm would produce in the short run rather than shut down immediately…
A: The firm will shutdown its production facility if it is not able to recover its variable cost in the…
Q: Assume that the market for onions is competitive/perfectly competitive market. Further assume that…
A: Perfect competition is a market structure with many small firms producing identical products. Entry…
Q: 1. Below is a demand schedule facing an individual firm. Complete the table by computing average…
A: Total Revenue = Price * Quantity Average Revenue = Total Revenue / Quantity
Q: When price and marginal cost are equal for a perfectly competitive fırm, the firm is O earning…
A:
Q: QUESTION 23 If a perfectly competitive firm incurs an economic loss, it should: Shut down if this…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Refer to the Figure under perfect competition. If P represents the market price for a price-taking…
A: A perfectly competitive firm:A perfectly competitive firm is a firm operating in a perfectly…
Q: In the short run, profits when a competitive firm shuts down are -$7600, and they are -$550 when the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Refer to the diagram to the right which shows cost and demand curves facing a profit-maximizing…
A: In this perfectly competitive market, all the firms sell exactly the same product at the same price.…
Q: 12. If the price is less than average total cost for a perfectly competitive firm in the short run,…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: Everett also works in the perfectly competitive manicure industry. The market price is $20 and he…
A: In general terms, cost is the amount paid in order to acquire any resource or service. The main aim…
Q: Question 26 PC Industry P/CI PC Firm MG ATC AVC MA-D-AR-P Q Which of the following is true for this…
A: Perfect competition refers to the market where a large number of firms exist producing and selling…
Q: If Doug's Dry Cleaners operates in a perfectly competitive market, and its shutdown price is…
A: If a perfectly competitive firm's market price is below average variable cost at the quantity of…
Q: During the summer, Alex runs a mowing service, and lawn mowing is a perfectly competitive industry.…
A: Here, it is given that Alex is producing output in the perfectly competitive market.
Q: Consider the following data facing a perfectly competitive firm: price = $20, quantity of output…
A: Answer: option (d) Explanation: Given: Price=$29Quantity produced=600 unitsAverage total…
Q: A perfectly competitive firm decides to shut down if: O the price falls below the…
A: This question pertains to the conditions under which a perfectly competitive firm decides to shut…
Q: Should a perfectly competitive firm keep producing even if it faces short-run losses? Please also…
A: A perfectly competitive firm is a kind of market participant characterized by being a price taker,…
Q: Price 8 7 6 5 4 3 I I 10 11 12 13 MC ATC AVC Quantity
A: The market price is $4, which is below the firm's average variable cost at all levels of output.…
Q: To maximize its profit, in the short run a perfectly competitive firm decides O A) how much…
A: Perfect competition market where large numbers of buyers and sellers exchange homogeneous product at…
Q: 24. The figure to the right illustrates the cost curves of a perfectly competitive firm. If the…
A: In perfect competition there are many firms producing identical goods
Q: Consider the graphs of the firm below for a perfectly competitive industry in the short run: MC ATC…
A: In short run perfectly competitive firm will produce where Marginal revenue equates marginal cost
Q: Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 41312 10 8…
A: In perfect competition, There exists a large number of buyers and sellers. The firm produces…
Q: Exhibit: Perfectly Competitive Firm Price per unit MC ATC $3.00 P. 2.00 1.90 1.00 100 250 300 400…
A: A perfectly competitive firm maximizes profit by producing at d=MC. It accepts the market price as…
Q: Consider a perfectly competitive firm with the following marginal cost (MC), average total cost…
A: Fixed cost does not depend on output produced. It remains constant even when firm produces 0 units
Q: Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12…
A: Perfect competition is the type of market structure where there are large number of buyers and…
Q: Consider a competitive firm that is operating in the short run. The firm is maximizing profits and…
A: The perfectly competitive market has a huge number of buyers and sellers. The market is…
Q: 1) Briefly explain how the total revenue for a profit-seeking film is determined
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: 24. New firms will exit a perfectly competitive market when: Average variable costs are less than…
A: In a Perfect Competition, firms sell homogenous products and are price takers.
Q: The company XYZ produces chairs and its costs are given in the table below. Variable Quantity Total…
A: Total revenue determines the amount earned from the quantity produced.Economic costs involve not…
Q: The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm.
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the…
A: In the short run if the firm is earning losses and is unable to cover its variable cost then it…
Q: Consider the total revenue (TR), total cost (TC), and total variable cost (TVC) curves shown at…
A: Every firm wants to achieve revenue that is higher than the total cost that they indulge in the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.If Doug's Dry Cleaners operates in a perfectly competitive market, and its shutdown price is $12/shirt, what does this firms short run supply curve look like? Select one: a. starting from price at which Doug starts making some economic profit, the short run supply curve is his MC curve. O b. it is an upward sloping curve starting at origin C Doug supplies nothing up to $12/shirt; after that it is his MC curve d. Doug supplies nothing up to $12/shirt; after that it is his AVC curve e. None of the answers offered are accurate.
- Q. In a perfectly competitive industry, a. Firms earn a breakeven profit in the short-run, but can either make an economic profit or make a loss in the long-run b. None of the above c. Firms can choose whether to produce or shut-down in the short-run d. Firms always charge a price equal to the minimum of AVC in the short-run e. There are high “sunk costs” involved which act as a barrier to entry in this industryThe cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 100 1 $ $ $ 130 2 150 3 180 4 220 5 270 6 330 7 440 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) Loss Profit : $ e. If the market price of the product is $110, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) profit loss : $The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 95 1 $ $ $ 115 2 125 3 150 4 200 5 270 6 350 7 450 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $ e. If the market price of the product is $100, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $
- 12. If the price is less than average total cost for a perfectly competitive firm in the short run, then the firm a. is earning a positive economic profit. b. should continue to operate, as long as price is equal to or greater than average variable cst. c. should certainly shut down. d. should continue to operate, as long as price is equal to or greater than average fixed cost. e. is making zero economic profit.Suppose a competitive market has a horizontal long- run supply curve and is in long-run equilibrium. If demand decreases, we can be cetain that in the short- run, a. at least some firms will shut down b. price will fall below marginal cost for some firms. C. price will fall below average total cost for some firms. d. at least some firms will enter the industry.Question 7 If a perfectly competitive firm incurs an economic loss, it should: O Shut down if this loss exceeds fixed cost. O Try to raise its price. O Shut down in long run. O Shut down immediately.
- When can firms decide to shutdown the business? a. When average fixed cost is greater than total revenue b. When average variable cost is greater than the marginal revenue c. When the price does not cover average variable cost d. When marginal revenue is decreasing Firms experience a break even point when a. Total revenue is greater than total cost b. Marginal cost os equal to marginal revenue c. Average fixed cost is equal to average variable cost d. Marginal revenue is zerored 1.00 pn ge Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. Operate in short run but shut down in long run Od. Shut down immediately Jump to O a. Increase production/output Ob. Shut down business Oc. Decrease production/output Od. Keep current production level Under perfect competition, if firm A's marginal revenue is greater than its marginal cost, what should firm A do to maximize its profit: AVAAN LUV1000 Evaluations Test 2-July 14th Which of the below is the difference between economic profit and accounting profit O a. Opportunity Cost O b. Revenue difference Oc: Explicit cost O d. Fixed cost Next page O e. Variable cost Next Activity Next ActivityThe accountants hired by Forever Fitness have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $125,000. Because of this information, in the short run, Forever Fitness should O a. lower their prices to increase their profits. ●b. stay open because shutting down would be more expensive. c. stay open because the firm is making an economic profit. O d. shut down because staying open would be more expensive.