Question When a perfectly competitive firm is at the profit maximizing output level what will be the relationship between firm's price and firm's marginal cost.

Q: Can a perfectly competitive firm set its own market price?

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

Q: rm

A: The short run supply curve In a perfectly competitive market is the curve of marginal cost being at…

Q: The shut-down point for a competitive firm is in the short run is where

A: In the short run the shut-down point for a competitive firm is in the is where the average…

Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…

A: No, a perfectly competitive firm would not produce if price were less than the minimum level of…

Q: What is the shape of the demand curve of a firm under perfect competition

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

Q: In the long run, perfectly competitive firms make zero economic profit. If this is the case, why…

A: When a company's economic profit is zero, it is in a state of normal profit, which is why normal…

Q: Graphically depict a purely competitive firm in the short-run. You can have the firm making a profit…

A: Perfect competition is that  type of market structure in which there many numbers of sellers and…

Q: Could you explain what is the long run and short run of a firm in a market

A: Production by a firm depends upon the time period. In the short run, the production possibilities of…

Q: In a perfectly competitive market, how do we go from a short run equilibrium to a long run…

A: A perfect competitive market is one there many firms offer homogenous product to a large group of…

Q: How does a perfectly competitive firm decide what price to charge?

A: Firms in a perfectly competitive market cannot influence the price as there are large numbers of…

Q: How to find the inverse demand equation faced by a perfectly competitive market?

A: In perfect competition, eqm. qty is determined by the intersection of MC(marginal cost) and…

Q: Is it true that a firm in a perfectly competitive market will never be able to earn positive…

A: There are different types of market which are broadly grouped as: Perfect competition and Imperfect…

Q: We are given that the Borrowings are $15000 and the interest are $6000  Calculate the fiscal…

A: # The borrowings of the government represents the fiscal deficit of the government because it is…

Q: With the aid of diagrams, explain what it means for a firm to be a price taker.

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: an excess profit be earned in perfectly competitive markets in the long run. Explain.

A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…

Q: At what point would a competitive firm shut down in the short run

A: A competitive firm is a price taker, which means the firm takes the price determined by the market…

Q: Why does perfect competitive market need to be maintained?

A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…

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: If the price is given what is the formula equation to fiqure what the maximum profit is for a…

A: In a perfectly competitive market, when the price is equal to the marginal revenue and the marginal…

Q: When should a firm exit the market in the long run

A: Firm entry and exit refers to the process in which new companies enter a market to sell products or…

Q: T or F Competitive firms' profit eventually erodes close to zero.  Why?

A: In a competitive market,  There are large no. of buyers and sellers.  The firm produces where P =…

Q: What portion of the marginal cost (MC) is the supply curve for a perfect competitive firm (the…

A: Marginal cost curve represents the addition to total cost, when one more unit of commodity is…

Q: A market in perfect competition is in long-run equilibrium. What happens to the market if labor…

A:

Q: What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity…

A: In a perfectly competitive market, there are large number of firms producing identical products thus…

Q: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…