Question 5 of 20Choose the answer that makes the statement correct.For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown menu] because firms will [dropdown menu] this market if profits are less than that and [dropdown menu] if profits are greater than that.Dropdown 1 options: - zero- positive- negativeDropdown 2 options: - exit- enterDropdown 3 options:- exit- enter- shut down **Question 5 of 20**Choose the answer that makes the statement correct.For firms in perfectly (purely) competitive markets, long-run economic profits are [dropdown] because firms will [dropdown] this market if profits are less than that and [dropdown] if profits are greater than that.**Dropdown Options:**- zero- negative- positiveThis exercise tests the understanding of long-run economic profit scenarios in perfectly competitive markets. In such markets, firms typically earn zero economic profit in the long run because if profits are greater than zero, new firms will enter the market, increasing supply and decreasing prices until profits reach zero. Conversely, if profits are less than zero, firms will exit the market, decreasing supply and increasing prices until remaining firms earn zero economic profit.

In a perfectly competitive market there are large number of firms producing similar and identical…

Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down

Question 5 Of 2 Choose the answer that makes the statement correct. For firms in perfectly (purely) competitive markets, long-run economic profits are becau this market if profits are less than that and if profits are greater than that. enter exit exit enter shut down

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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t of 35 45 40 30 25 255 15 20 10 5 MC, AC MC AC 9 0 100 200 300 400 500 The graph shows average and marginal cost curves for a typical firm in a perfectly competitive industry in LONG-RUN equilibrium. The long-run equilibrium price of the product is $ In long-run equilibrium the firm will produce units. In long-run equilibrium the firm will earn $ economic profit.
Question 7 When should a firm shut down? In other words, what is the shut down point for a firm in perfect competition?
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Question 5 Let's suppose that a perfectly competitive firm has the following revenue and cost data. How many products should the firm produce in order to maximize its profits? You can assume that the firm's price is greater than its average variable cost. Quantity Marginal Revenue Marginal Cost 40 $4 $7.70 41 $4 $5.10 42 $4 $3.30 43 $4 $2.10 44 $4 $2.50 45 $4 $3.70 46 $4 $4.10 47 $4 $5.20 48 $4 $10 Question 6 What is the profit maximizing (or loss minimizing) rule for a firm in perfect competition? Be sure to list all of the conditions.
7. Use the graphs below to answer the following questions. Market a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? Markat c. Sketch on the graph and explain what happens to bring this market to long run equilibrium d. is the firm making an economic profit or loss? e. Will firms enter or exit this market? MC ATC Firm MR MC ATC age 1 of 3 -MR f. Sketch on the graph and explain what happens to bring this market to long run equilibrium.
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Hi there can you please help me to answer the following question 1. Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making economic loss.