Q: Explain the FOUR(4) assumptions of perfect competition.
A: Perfect competition is a type of a market structure.
Q: 3. The following graph shows cost curves for a perfectly competitive firm. The market price of each…
A: The answer is given below
Q: Perfect competition occurs when none of the individual market participants (buyers and sellers) can…
A: A market is the collection of buyers and sellers. Perfect competition is the market form with a…
Q: 3. Consider a firm operating in a perfectly competitive market. Answer the following questions as…
A: Under PC, many sellers producing homogeneous products altogether face the entire market demand.…
Q: A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the…
A: Variable cost is that cost component, which increases (decreases) with increase (decrease) in…
Q: Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10…
A: For a perfectly competitive firm, price is $10, Quantity is 2000, Total cost is $24,000, the Fixed…
Q: Assume the market for Christmas Trees is perfectly competitive. Furthermore, assume that all firms…
A: Given Information P = 178.5 - .055QDP = 16.5 + .005QS Market is AT equilbrium when QD = QS so,…
Q: Converse has been fairly successful selling denim colored UK sportswear. Lydia, wanting to get in on…
A: Lydia is faced with a difficult situation in the cutthroat world of denim-colored UK sportswear. She…
Q: Matthew Rafferty produces hiking boots in the perfectly competitive hiking boot market. The table…
A: AFC = TFC/ Output AVC = TVC/ OutputATC = TC /Output MC = TCn - TCn-1TFCIt is constant at each level…
Q: Calculate the maximum profit for the industry if it is perfectly competitive according to the…
A: As per the given diagram MC=ATC
Q: Graph represents the cost structure of an individual firm in a perfectly competitive market.…
A: Break even point is defined as the point where total costs of the firm is equal to the total revenue…
Q: B. when economic profits are zero
A:
Q: The diagram at the right shows the various short-run cost curves for a perfectly competitive firm.…
A: A perfectly competitive firm is a price taker in the market, meaning it has no control over the…
Q: Suppose a perfectly competitive firm is able to sell its product for $8. At its current level of…
A: The profit of a firm can be measured by subtracting total cost from total revenue. Profit = Total…
Q: Refer to the graph that depicts Joe's family restaurant in a perfectly competitive market. The firm…
A: A perfectly competitive market is the kind of market with multiple sellers producing identical…
Q: In the short run, a perfectly competitive firm maximizes profit at that point where the upward…
A: A firm of competitive nature tends to have an insignificant share in the industry supply. This…
Q: a. Graph marginal cost (MC). Instructions: Use the MC' tool to draw the marginal cost curve point by…
A: A competitive firm maximizes profit by producing that quantity of output where marginal cost equals…
Q: Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly…
A: Given : Perfectly competitive market Producing at the profit maximizing level of output. ATC=$3.3…
Q: Section 4.2.2 claims that the firm never extracts to a level at which marginal profit is…
A: The profit which is procured by a firm or person when one extra or negligible unit is delivered and…
Q: Suppose a firm's long-run marginal cost curve is given by LMC(g) = 1000/ q. Is there a price p > 0…
A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…
Q: In terms of the relation between the average cost (AC) and marginal cost (MC) curves: When average…
A: The average cost is the per unit cost of production in a production process. It is the ratio of…
Q: Calculate the profit for the perfectly competitive form above if the market price is $1 (graph left…
A: In perfect competition, Q*(eqm quantity) is found by the equality condition of P(price) and…
Q: The graph shows the cost curves of an individual firm in a perfectly (or purely) competitive…
A:
Q: Critique the following statement as True or False and explain your reasoning. A profit-maximizing…
A: Profit maximization means to follow a strategy of establishing that output and price at which…
Q: Complete the following table for a perfectly competitive firm and assume the firm can only produce…
A: The market is perfectly competitive. Therefore the firm is a price taker and profit maximization…
Q: Costs, P P=120 60 3 MC P=MR ATC In the above graph, what is the total profit of the perfectly…
A: In the case of Perfect Competition, there are a large number of firms selling identical products. An…
Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…
A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…
Q: Perfect competition is an economic term that refers to a theoretical market structure in which all…
A: Meaning of Competitive Market: The term market refers to the situation under which the producers…
Q: The figure below depicts the short-run market equilibrlum In a perfectly competitive market and the…
A: Perfect competition market is such market where there are very large number of buyers and sellers…
Q: Use the graph above for question one assuming it represents the cost of a perfectly competitive firm…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Assume this firm faces a perfectly competitive market structure. The distance between ATC and AVC…
A: Total cost is a sum of fixed cost and variable cost. TC= FC + VC
Q: A perfectly competitive industry is composed of 100 identical firms with cost structure: q…
A: a. The total cost at zero level of output is $4 which means that the cost at this level is the fixed…
Q: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.
A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…
Q: In the figure provided below, which perfectly competitive firm (a, b or c) earns economics profits…
A: The distinction between the cash collected from the sale of AN output and therefore the prices of…
Q: 84 6. 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14…
A: A pure competitive firm has no liberty but to take up the price determined by the market forces…
Q: following graph: Hint: Use the black point (plus symbol) to view the coordinates of the points on…
A: Profit maximization is an economic principle that suggests businesses should aim to maximize their…
Q: Identify a perfectly competitive firm
A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…
Q: Price and Cost ($ per unit) 20.00 15.75 15.00 12.50 10.00 7.50 5.00 0 MC LO 5 7 8.19 10 Output…
A: The figure shows MR is constant so it is equal to price. It represents perfectly competitive market.…
Q: What is the averge total cost at which this firm reaches its break even point b) what is the average…
A: In the short run, the firm has to incur fixed cost even if it produces zero units. The shut down…
Q: QUESTION 9 Using the graph below, determine if the firm should shut down or stay open in the short…
A: according to diagram MR>MC. Revenue is more than its variable and fixed costs. Hence the firm…
Q: Refer to Figure 7.4 (above) for a perfectly com O Average variable costs at the output E. Total…
A: A perfectly competitive firm is a price taker. This means the price in a competitive market is…
Refer to Figure 7.4 (above) for a
a )OBGE.
b)BAHG.
c)OCFE.
d)OAHE.
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- Question 2 The market for hand-made bar soaps in Vancouver is perfectly competitive. The marginal cost function for each (identical) firm is given by MC = 2QS + 4. Also suppose the short run cost functions are the same as the long run cost functions. If the market price P is $10. What is the individual firm's MC? a) 8 b)14 c)10 d)12 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineThe following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. COSTS (Dollars) 100 100 80 90 80 20 70 70 HD 50 40 30 20 0 11 D 10 O MC Price (Dollars per snapback) 15 15 20 25 55 70 85 201 ATC 0 D AVC O 50 60 70 80 QUANTITY (Thousands of snapbacks) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. □ Quantity (Snapbacks) BO 100 ▼ On the following graph, use the orange points (square symbol) to…Advanced Microeconomics, Production Theory: Perfect Competition
- Please fill out this table!Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.In the above figure, the perfectly competitive firm's shutdown point is at a price of
- If any of your answers are negative, put a minus sign in front of the number. You are given the following cost data for a perfectly competitive firm. Q TFC TVC 16 16 10 16 18 16 28 16 16 40 54 70 16 Calculate TC, MC, AFC, AVC, and ATC when Q = 2. TC = S , MC = S. AFC = $ AVC = $ ATC = $ If the market price is $15, how many units of output will this firm produce? units of output. Calculate the firm's profit: $ Will the firm operate or shut down in the short run? The firm In the long run, the firm should O A. expand because short-run profits are negative. O B. expand because short-run profits are positive. OC. shut down because short-run profits are positive. O D. neither expand nor shut down because short-run profits are positive. O E. shut down because short-run profits are negative.Use the values for a perfectly competitive firm below to answer the questions: Price Quantity Total Cost Fixed Cost Variable Cost $10 2,000 $24,000 $8,000 $16,000 (A) Should this firm shut down in the short run? (B) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (C) Are your answers to (a) and (b) different? Explain in one to four sentences.Problems: Question #6: The Phantom Farms bakery produces pumpkin pies according to the following short run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that the bakery can only produce and sell whole pies. AVC = ATC = MC = Quantity (pies) TFC = total TVC = total TC = total fixed cost variable cost average average total marginal cost variable cost cost cost (i) same as (i) 1 14 18 14.0 18 14 2 same as (i) (ii) 28 12.0 14 10 3 same as (i) 38 42 12.7 (v) 14 4 same as (i) 60 (iii) 15.0 16 22 same as (i) 86 90 17.2 18 (vi) same as (i) 116 120 (iv) 20 30 Fill in the five missing cost numbers indicated in the table above. (i) (ii) (iii) (iv) (v) (vi) If the price of pumpkin pies is $22 per pie, how many pies should Phantom Farms produce in the short run? What profit or loss does the firm earn? Explain how you arrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profits or losses. 3
- In the above figure, The cost curves of a typical perfectly competitive curve are show. What will price settle at in the long run?If the restaurant now sells 75 bowls of Super Chasu Ramen at $20.00 per bowl, are they still able to make profit or have a loss? Why or why not? Explain.Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, and he is producing at a profit maximizing level Q*, calculate his profit. (Hint: compute MR and MC to find Q*) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120 Select one: a. $45 b. $30 c. $35 d. $15 e. $0 Clear my choice
