Q: firm in a perfectly competitive market: а. What is profit for this firm if price = $22? Make sure to…
A: Q MC($) AVC($) ATC($) 0 40 12.50 12.50 35.00 100 8.33 10.00 19.00 130 16.66 11.53…
Q: Perfectly competitive firm that makes economic loses in the short run must cease its operations. do…
A: Perfectly competitive firm is a price taker because there are many sellers in the market selling…
Q: 8. 4. A firm in a perfectly competitive market will operate in the short run as long as its price…
A: Variable cost is a cost varying in response to a change in output level. These costs are a function…
Q: 1. Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to…
A: When all companies sell identical products, market share has no bearing on price, companies can…
Q: 19. Refer to the following diagrams which pertain to a purely competitive firm producing output q…
A: Pure market: It refers to a market situation under which the large producers were unable to…
Q: 3. Suppose you start a business of manufacturing computer software. company is a perfectly…
A: Given: The fixed cost = Tk. 60000 Total cost = Tk. 140000
Q: graph shows the short run cot curve of a firm in a purely competitive market. Which of the following…
A: The profit maximizing output for the firm occurs where the (the upward sloping part of the) marginal…
Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…
A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…
Q: 7. Short-run supply and long-run equilibrium Consider the competitive market for rhenium. Assume…
A: Competitive market is a market where there are large number of firms and each firm is producing an…
Q: 3. The Binkle Binder Corporation sells 3-ring binders in a perfectly competitive market at a price…
A: No, firm should exit the market
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: If it is possible for a perfectly competitive firm to do better financially by producing rather than…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: 1
A: Meaning of Cost Of Production: The term cost of production refers to the situation under which a…
Q: 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the…
A: In perfect competition there are large no of buyers and sellers and all the buyers are price taker.…
Q: 4. Suppose the competitive firm faces a price of $50, an average variable cost of $33, and has an…
A:
Q: 3. Suppose all firms in a competitive industry are operating at output levels for which P equals…
A: PLEASE FIND THE ANSWER BELOW. COMPETITIVE INDUSTRY: A competitive industry allows firms to freely…
Q: Perfectly competitive firms earn zero economic profit in the long run. True False
A: In perfectly competitive market, price is constant so it is equal to marginal revenue. Profit is…
Q: Question 9 Which of the following is(are) correct? A competitive firm will exit the market in the…
A: Economic profit includes a normal profit. Even when economic profits are zero, the firm is earning…
Q: Question 13 Which of the following is true for a perfectly competitive firm that maximizes profit?…
A: A perfectly competitive firm is the one that competes with many sellers of the homogenous good due…
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: Please include graphs, thank you 8. Short-run and long- run effects of a shift in demand Suppose…
A: A major tenet underlying the short run and long run concepts is that in the short term, companies…
Q: 6) Given that the competitve market pice is equal to P*, Should the firm shut down in the short run?…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…
Q: 2. Suppose the marginal cost curve for a perfectly competitive firm is MC = 10q + 80, where q is…
A: Given: MC=10q+80 Price of output=300
Q: What assumptions in the perfect competition model ensure that economic profit is zero in the long…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: The figures show the cost curves and the marginal revenue curve of a Perfectly Competitive firm.…
A: Perfect competition is a market structure in which all producers and customers have complete and…
Q: Which of the following will not hold true for a competitive firm in long-run equilibrium? A.P =…
A: In the long run, firms in a perfect competition market, only make normal profits and at the same…
Q: Illustrate short run profit maximization scenerio of a competitive firm in case of loss.
A: Competition is an economic market model in which several vendors sell items that are similar but not…
Q: 1.What is the profit maximizing condition for Perfect Competition in the long-run?
A:
Q: 4. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q²+0.01q^3 What is…
A:
Q: A firm in a perfectly competitive industry currently faces a market price of $20 and is maximizing…
A: (Q) A firm in a perfectly competitive industry currently faces a market price of $20 and is…
Q: 2. Show and explain the equilibrium in the short run for a perfectly competitive firm. Why…
A: Under perfect competition, there are a large number of firms who sell identical products. The…
Q: Which of the following is true of perfectly competitive firm that keeps producing in the short run?…
A: A perfectly competitive market is characterized by a large number of buyers and sellers. The price…
Q: b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1,…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Assume that there are 100 identical company in the perfectly competitive cabbage industry. Each firm…
A: The short run cost curve is given as The market demand curve is given as Q = 1500 - 50P There are…
Q: Answer the following question and submit to the appropriate space on Canvas. Be careful to…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: 3. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The…
A: Total cost function is given to be as:-TC = a + bQ² We have the case of a perfectly competitive…
Q: 31. In short-run equilibrium for a competitive firm economic profits: Will be positive. b., Will be…
A: A competitive firm is a price taker in the market. All the buyers and sellers have perfect…
Q: A firm produces a product in a perfectly competitive industry and has a short-run total cost…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
7. Explain the situation when the firm under
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 2 b. Explain the situation when the firm under perfect competition continues production in the short run even if the firm incurs abnormal loss.4. Bob's ice-cream house, a perfectly competitive firm, is suffering a loss, but the price is still above minimum average variable cost. Then in the short run this firm should and in the long run, if there is no change in economic conditions, this firm should a) shut down; exit the industry b) shut down; expand produce where MR = MC; exit the industry produce where MR = MC; expandQUESTION 10 Jack sells water bottles. Assume the market for water bottles is perfectly competitive. Jack sells his water bottles at the market price of $9.00. At the profit-maximising output level of 51 water bottles, Jack's average total cost is $4.40 per water bottle. The minimum average variable cost is $3.90 per water bottle. Answer the following questions: a. Jack's economic profit or loss is decimal places (ie: to the nearest cent). (use a negative value if a loss). Answer in dollars, rounded to two b. State whether the following statement is true or false: "At the profit-maximising quantity, Jack is making an economic profit of $4.60 per water bottle." Type T for true, or F for false c. State whether the following statement is true or false: "Jack should shut down if the market price is $3.85 per water bottle." Type T for true, or F for false
- Question 7 When should a firm shut down? In other words, what is the shut down point for a firm in perfect competition?a. Calculate profit for each quantity. How much should the firm produce to maximize profut ? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at ) At what quantity do these curves cross? How does this relate to your answer to part (a)? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?C. Table below shows some cost data for a perfectly competitive firm i. Is the firm operating in the short run or long run? How do you know?ii. At a market price of $32, what would be the output of the firm? Does this firm makeeconomic profit or loss at this price level? iii. If the market price is $32, would the firm shut down or keep operating? Why? iv. Based on your answer above, would firms enter or exit the market in the long run? What will happen to the market price?
- According to the figure above: a. Is the firm maximizing economic profit? b. What is the firm's short run shutdown price?Suppose the current market price for bar stools is $25 each. My friend René's profit-maximizing output is to produce 10 bar stools. If he produces 10 bar stools, his average variable cost will be $30 per unit and his average total cost will be $40 per unit. In the short run, what is René's profit?Hint: Should René keep operating or shut down? a.$150. b.$0. c.-$100. d.-$150.7. A perfectly competitive firm can sell its product for a price of 10. The firm's (short run) total cost function is: C(q) = 5 +3q+q². On a well-labeled graph, draw a figure illustrating the firm's profit at different levels of output. Show the profit-maximizing level of output on the graph. a. b. c. Write an expression for the firm's profit maximization problem. Solve the firm's profit maximization problem to determine the optimal level of output. Be sure to check whether or not the firm should shut down. d. Suppose instead that the price of the output falls to 5. Should the firm shut down? Explain. e. Suppose that instead of the cost function given above, the cost function is C(q) = 5 + 3q. The price of the good is 10. What happens if you try to maximize profit in this situation? Explain.
- Galaxy is a firm in perfectly competitive market. Galaxy currently produces and sells 400 units of toys. Its total revenue is $4,000; the marginal cost of producing the last toy is $12; and the average total cost of producing the the last toy is $8. Is the Galaxy maximizing its profit, or should it increase or decrease output in order to increase its profit? Explain to get full credit.Slide 2 Questions: a. What is the total revenue of the firm at the optimum level of output? b. What is the total cost at the optimum level of output? c. What is the profit of the firm at the optimum (profit-maximizing) level of output? d. What is the average cost of each unit sold at the optimum level of output? Is the firm at its log-run equilibrium? If yes/no, why?a.Suppose a perfectly competitive firm can produce10000 bushels of corn a year at an output at which marginal revenue is equal to marginal cost. The market price of corn per bushel is $2. The firm's total costs per year are $30000 and fixed costs per year are $15000. Show and explain which of the following is true: In the short run, this firm should a) Produce 20000 bushels to try to increase economic profit. b) Produce 10000 bushels of corn because, although they are losing money, they are losing less than if they shut down. c)Shut down. d) Continue producing until the price of corn increases. b.A perfectly competitive firm, with MC=q operates in a market character,zed by the following market demand and supply conditions: Demand: Q=20000-100P Supply: Q=100P How much output does this competitive firm produce to maximize profit? Show your work graphically and algebraically.
