What does “perfect competition” mean? State and explain five (5) of the underlying assumptions.

Q: Explain by giving example the meaning of Economic profit

A: Economic profit refers to the difference between the revenue received through sales of a product and…

Q: what is the profit or loss at the profit maximizing output?

A: Profit maximizing level is where MC= MR. This is at P= $40 and Q= 200.  Given ATC is less than…

Q: Explain why clear understanding of the environment within which it operates is important for…

A: Business: The organization or an individual engaged in commercial activities with the aim of earning…

Q: What industry is the closest example you can think of to perfect competition, and why? What are its…

A: The market structure, which has numerous buyers and sellers, is perfect competition. The market…

Q: Explain the concepts of revene, costs, and profit

A: Production is the process of merging numerous material and immaterial inputs (plans, know-how) to…

Q: Draw the cost-volume-profit diagram?

A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…

Q: Our topic is Market Structure. Please help to explain if this business is likely to be more or less…

A: Market Structure:Small Business Selling Tables with Cartoon Designs:A picture of a person selling…

Q: Assume Fixed cost of $50. •Assume the perfect competition price is $500. Quantity Total 0 1 2 3 4 5…

A: Cost refers to the sum paid to purchase any products or services. In a nutshell, the term "cost"…

Q: In a market that allows free entry and exit, when does the process of entry and exit end for the…

A: New firms enter the market when existing firms are making a positive economic profit in the short…

Q: MC Revenue and cost (dollars per unit) MR $40 ATC AVC e 24 20 14 12 8 100 150 200 Quantity 55

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Name atleast 2 business or service in the Philippines that is an example of perfect competition

A: Some of the features of Perfect Competition: 1. Firms are price takers 2. No individual firm can…

Q: INSTRUCTION: Give one example of a technopreneur, describe his/her business, and then explain what…

A: According to their areas of interest, different sorts of entrepreneurs operate their firms in…

Q: Economics How would the principle agent problem differ from other major theories(profit…

A: Principal agent problem when an individual delegates an action to be taken on his behalf by some…

Q: Question: Perfect competition results in an efficient allocation of resources. True False

A: The question is asking whether perfect competition, a market structure characterized by a large…

Q: -5Qs The demand curve is P = 400-8Qp. The supply curve is P = 300 + At market equilibrium, the…

A: We have given the following demand and supply equations:P = 400 - 8QD ----------> Demand…

Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…

A: Imperfect competition is that market structure which does not include  Perfect competition. It…

Q: Which 'Economies of Scale' creates imperfect competition and Why?

A: Economies of scale refers to a situation where there is fall in per unit output of average cost with…

Q: Define the term Unit-Profit?

A: The profit that is earned per unit of the output is known as Unit-Profit. Clearly, the profit that a…

Q: Discuss where does the shutdown being and why? What does the company has to do to get back to…

A: The answer is given below

Q: a. List and describe the four assumptions that underlie the theory of perfect competition.

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Write down the assumptions of perfect competition

A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…

Q: To compute Economic Profits, which costs are used? Illustrate

A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…

Q: True/ False Perfect competition produce a homogeneous product which have a good knowledge among…

A: A market structure known as perfect competition would consist of many small businesses providing the…

Q: 1. What are the conditions of Economic profit, economic loss and breakeven point of

A: Perfect competition refers to the market where market equilibrium is decided by the market forces of…

Q: Expain whether a perfectly competitive firm would or would not innovate.

A: Perfect competition is a market structure in which a large number of buyers and sellers in the…

Q: Explain  the block chain technology in agricultural and give examples

A: The economies around the globe are involved in various types of economic and financial activities,…

Q: What does perfect competition mean and what are the concepts of it?

A: Perfect competition refers to the market structure featuring more number of sellers and buyers in…

Q: Distinguish between accounting profit and economic profit. Provide examples to support your answer.?

A: Accounting and economic profit are two fundamental concepts in the economics of business and…