What is the shutdown decision of the firm? How should a firm decide whether to continue business or shut down in the short run?

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: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…

Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

A:

Q: Evaluate the following statement the demand for U.S. oranges has increased because the quantity of…

A: The demand shows the different quantity of goods and services that people are willing and able to…

Q: When does z profit-maximizing competitive firm decide to shut down? When does it decide to exit the…

A: A profit maximizing form produces output at the point where the marginal cost is equal to marginal…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: What are the characteristics of a perfectly competitive industry?

A: Perfectly competitive market refers to market where large number of buyers and sellers participate…

Q: How a firm respond to economy profits and economy losses in perfectly competitive market?

A: In the economic theory, perfect competition happens when all organizations sell indistinguishable…

Q: Will a perfectly competitive market display allocative efficiency? Why or why not?

A: ANS Allocative Efficiency occurs when the total surplus is maximized. Where the total surplus is…

Q: Under what conditions would a firm decide to shut down in the short run but remain invested in the…

A: In a market, a firm faces different situations in short-run and long-run due to which it makes…

Q: Goldbar is an energy bar firm selling in a perfectly competitive market but is considering the…

A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…

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: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Under what conditions will a firm shut down temporarily? Explain. Under what conditions will a firm…

A: In situations where it cannot pay its variable costs, a company may decide to temporarily close.…

Q: Describe a firm’s shutdown decision

A: Costs are the expenses that the firm has to incur in its production activities. In the short run,…