When a perfectly competitive firm decides to shut down, it is most likely that Group of answer choices marginal cost is above average variable cost. marginal cost is above average total cost. fixed costs exceed variable costs. price is below the firm’s average variable cost

Q: If you know that the market price for a perfectly competitive firm is 10 Dirhams and the average…

A: In the perfectly competitive market structure there exists a large number of buyers and sellers of…

Q: What point reflects the price that a monopolist would charge? (letter) A/ What point determines the…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: A perfectly competitive firm will shut down when the price is just below the minimum point on the A)…

A: A competitive firm produces output where P= MC but at this output firm may earn profit or loss.

Q: Price and Cost (dollars) O O 8 OC 76543 2 1 Refer to the graph above. The perfectly competitive,…

A: The point is to determine how much output a perfectly serious, profit-expanding firm will produce in…

Q: Question 1c. Why does price equal marginal revenue for the perfectly competitive firm? What is the…

A: The perfect competition is the market condition in which there are many buyers and sellers in the…

Q: $20 ATC 15 10 20 70 80 30 40 Quantity 10 50 60 The diagram shows the average total cost curve for a…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: fa perfectly competitive firm finds that the price exceeds its ATC, then the firm A) is incurring an…

A: A perfectly competitive market is the one where there are large number of buyers and sellers selling…

Q: Above figure shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.…

A: Above figure shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.

Q: Table Cost.EX2.2: Data for a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10…

A: A firm will maximize profits when Marginal Revenue is equal to the Marginal Cost. Requirement 1: If…

Q: The streaming entertainment industry is currently making positive economic profit. What do we expe…

A: Economic profit is refers to measure of the financial gain that a business or firm earns above and…

Q: Price B с A Cannot be determined C B The graph above depicts the demand, short-run industry supply…

A: In the long run, the industries tend to produce more goods as they have better resources and most…

Q: grocery store in a perfectly competitive market can     differentiate its product with respect to…

A: There are many market in the economy with different characteristics , so here we choose the correct…

Q: A grocery store in a perfectly competitive market can ignore profit-maximizing strategies.…

A: A firm in which a large quantities of firms are present is called perfect competition.

Q: QUESTION 5 The profit-maxinmizing rule for any selling firm is produce more than the closest…

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

Q: QUESTION 2 Match each of the terms to their description: v Entry A. additional cost of producing one…

A: The firm enters when there is positive economic profit and exits when there is negative economic…

Q: In the short run, a perfectly competitive firm   Question 15 options:   chooses its optimal plant…

A: In perfect competition there are many firms producing identical goods.

Q: In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and…

A: In the short run, a perfectly competitive firm maximizes profit by adjusting its output level to…

Q: MC $30 MR ATC AVC 20 15 75 80 100 Output Based on the above graph: 1. At which point the firm gets…

A: Abnormal profits are the supernormal profits which are in excess of normal profits. Normal profits…

Q: The graph shows the relevant cost curves for a perfectly (or purely) competitive firm. What value…

A: In economics, particularly general equilibrium theory, a perfect market, also called an atomistic…

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 11 A firm that is suffering an economic loss in the short run should continue to operate as…

A: Short run refers to a period of time which is short enough that the firm cannot change its fixed…

Q: What are the profits or losses when a competitive firm shuts down in the short run? Group of answer…

A: *ANSWER :-  * OPTION (A) is the correct answer.  TFC = TC - TVC  ( It will realize a loss equal to…

Q: Using the midpoint method, identify the type of demand between W and X? PRICE (Dollars per unit) W

A: Demand refers to the quantity of a goods or service that a consumer is willing and able to buy at a…

Q: The graph shows the cost curves of an individual firm in a perfectly (or purely) competitive…

A:

Q: Which of the following will cause the purely competitive firm to stop operations?  A. the price can…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: Which of the following statements can be drawn from this diagram? a. Point C represents a lower…

A: An isoprofit curve is a graphical representation that shows all the combinations of two factors of…

Q: Question 5.5.   T-Shirt Enterprises is selling in a purely competitive market.  It is producing…

A: Pure competition or perfect competition refers to the market structure where the number of buyers…

Q: Question 13 If a firm operating in a competitive industry shuts down in the short run, it can avoid…

A: The structure of a market where there are numerous firms competing with each other for selling goods…

Q: Question 6.6.   A firm should increase the quantity of output as long as its  marginal revenue is…

A: In a firm, there are several costs and revenues related to the accounting procedure. The marginal…

Q: There are 200 identical firms that produce chocolate in the short run. The market demand for…

A: (a)  TC = 50 + 200Q2 Differentiate TC w.r.t Q, to get the MC =>MC = dTC / dQ => MC = 400Q…

Q: In general, in the short run, the supply curve of a purely competitive firm is: Multiple Choice the…

A: A purely competitive firm is one that serves its output in a market where other firms are serving…

Q: ... 50 MC ATC 40 MR 30 20 10 10 20 30 40 Quantity (per day) The figure above shows a perfectly…

A: Equilibrium price and equilibrium quantity will set at the point where marginal revenue equals…

Q: For a firm operating in a competitive industry, which of the following statements is not correct?…

A: Perfectly competitive market is such a market where there are very large number of buyers and…

Q: Dollars Multiple Choice O 0 Quantity Curve (2) in the diagram is a purely competitive firm's O (1) O…

A: Introduction  Pure competition is a term that describes a market that has a board range of…

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: In pure competition, price is determined where the industry: Multiple Choice total cost is greater…

A: Price: It means the amount of money that has to be paid to acquire a given product.

Q: Price Quantity Total Cost Fixed Cost Variable Cost $10 2000 $24,000 $8000 $16,000 (a) Should this…

A: Here, price, quantity, and different cost information of a firm is given to analyze the short-run…

Q: 1. The following figure shows the marginal cost curve and the average total cost curve of a firm…

A: A market where there are many other firms selling identical or nearly identical products, and no…

Q: A purely competitive firm does not try to sell more of its product by lowering its price below the…

A: The market is characterised by a huge number of sellers and buyers with homogeneous products. The…

Q: the short run, a firm that finds itself earning a loss should compare the market price to which cost…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: Firms total revenue? Firms total cost? Firms total profit?

A: The total revenue(TR) function in the above problem is- TR=PQTR=31Q Total cost function is given as-…