Refer to the graph that depicts Joe’s family restaurant in a perfectly competitive market. If price is P3, the profit-maximizing output Multiple Choice A. the firm is earning a positive profit. B. the firm has zero profits. C. the firm is earning a loss then a profit. D. the firm is suffering a loss.

Q: 3. The following graph shows cost curves for a perfectly competitive firm. The market price of each…

A: The answer is given below

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A: A perfectly competitive firm is one of many firms that sell homogeneous goods in the market.

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A: TC = 1600 + 4Q2

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A: In the short run at least one input is fixed whereas in the long run there is no fixed cost.

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Q: A perfectly competitive firm showing a profit

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Briefly explain why the following statements are either TRUE or FALSE: a. Perfectly competitive…

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A: A perfectly competitive market is a theoretical model of a market structure characterized by…

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A: The profits are maximizes profit when the value of the last unit of a good (i.e. marginal revenue)…

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Q: Price 8 7 6 5 4 3 I I 10 11 12 13 MC ATC AVC Quantity

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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

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Suppose the market price of a good is $20 and TC=0.5Q2. A.   What Q should a profit maximizing…

A: A competitive firm is a price taker as there are large number of firms selling identical goods

Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.