Using the graph above, calculate profits at the profit maximizing output level for this competitive firm.

Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…

A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…

Q: Explain why a demand curve is also a curve of average revenue. Recalling that when average revenue…

A: Perfect competition is the form of market with large number of buyers and sellers, selling…

Q: Suppose that Betty's Beads is a typical firm operating in a perfectly competitive market. Currently…

A: Approach to solving the question: Based on the information provided about Betty's Beads, we can…

Q: The graph below shows data for the production of apples for an individual firm operating in a…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

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: Calculate the maximum profit for the industry if it is perfectly competitive according to the…

A: As per the given diagram   MC=ATC

Q: f a competitive firm finds that its average variable cost is decreasing at its current profit…

A: A competitive firm is a firm that doing business in that market where the large number of buyers and…

Q: Why is the demand curve facing an individual firm in a perfectly competitive market horizontal? Does…

A: A market with perfect knowledge, many buyers, and a large number of tiny enterprises offering a…

Q: Explain why perfectly competitive firms are classified as a price taker

A: Answer - Price Taker Firm - The price taker firm are those firm who has not the ability to influence…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…

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: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…

A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…

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: 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: "Consider a perfectly competitive firm in the following position: Output is 4000, market price = $…

A: It can be described as a cost that helps a producer to know about the cost of producing one more…

Q: If Conagra is a competitive firm, it will never operate at an output where its average total cost…

A: Perfect competitive firm is the firm which work in the industry where number of firms are working…

Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

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: Draw the long-run equilibrium graph for a perfectly competitive firm. Be sure to label the quantity…

A: This is a market environment where a lot of consumers and sellers of similar goods are present, and…

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…