0- A perfect competition market structure means: a. a large number of buyers & sellers b. working together to set prices c. difficulty entering & exiting the market d. little information is available to buyers
Q: What is the role of economies of scale to determine the success of a firm in managing forces of…
A: Competition: It refers to a situation that exists in a market where there is a number of firms that…
Q: Explain various markets and how they work to your friend so your friend will be able to run the…
A: Mainly there are 4 types of market structures. These are: Perfect Competition(PC) is the structure…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: The minimum efficient scale of production is the level of output at which the long-run average total…
Q: 4. Under imperfect competition with with and horizontaly differentiated products, the firm units…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: a corn farmer will tend to expand his output as long as the price of corn exceeds aversge variabke…
A: The structure of a market where there are a large number of buyers and sellers in the market selling…
Q: 7. Perfect competition has a A. Large; large number of firms. B. Small; small C. Large; small D.…
A: The perfectly competitive market is one of the market structures in the economy just like monopoly,…
Q: 1. What is profit? What is the difference between accounting profit and economic profit? 2. What is…
A: In a financial year, each firm /industry earns some revenue. Profit is the amount remaining from the…
Q: 1) The most important goal of the firm is to? A) maximize its sales volume. B) maximize its…
A: A firm is defined as a company or institution that buys and sells items and/or services to customers…
Q: Characteristics of a Purely Competitive Market: 1: Identical or very similar products 2: No…
A: The perfectly competitive market is a market structure which has a large number of buyers and…
Q: 6. Consider in this question that the market for truffles operates in a free market economy. The…
A: Q VC FC TC 0 21,000 10 80,000 20 2,10,000 30 3,10,000
Q: Explain some of the different factors that would affect a firm’s profitability and what might make a…
A: The profit/loss of a firm is the amount of net benefit from to the business from participating in…
Q: Kindly find the remaining values and writ the comments on the results?
A: The remaining values can be found using the following formulas Arc elasticity is calculated by…
Q: List and describe the four assumptions that underlie the theory of perfect competition.
A: The four fundamental assumptions of the perfect competition are: The products are homogeneous,…
Q: 3. Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less…
A: In a market, total cost is associated with the production of goods and services by a firm as it is…
Q: provide a detailed description of the company Luxottica and what products they sell?
A: Luxottica is the world’s largest manufacturer of frames in the world which merged with the lens…
Q: 5. The ABC Corporation is making an accounting profit producing and selling ghostbuster slimers.…
A: ABC corporation was making accounting profit. Ghostbuster slimers business would have faced…
Q: 5. Competition Bob's lawn-mowing service is a profit-maximizing, competitive firm. fixxed cost. He…
A: Given that, Price = $30 Total cost per day = 320 Fixed cost = $70 Lawns per day = 10 Total variable…
Q: The following table shows the quantity of leather purses, total cost, total revenue and marginal…
A: Marginal cost is the additional cost incurred by a producer when he employs an additional unit of…
Q: 1) How much output should the firm produce? ii) At what price should the firm produce III) What is…
A: It is generally accepted that the primary objective of a normal company is to achieve the highest…
Q: A profit maximizing firm in a competitive market is currently producing 150 units of output at a…
A: Profit is the amount derive from the difference between Total revenue and total cost And total cost…
Q: Guided by the DIAGRAM, explain market imperfections and ineffiency.
A: The theory of the firm comprises of various financial hypotheses that clarify and anticipate the…
Q: 1.Describe the profit maximising rule.
A: Marginal Cost(MC) is the additional expenditure incurred on the production of additional unit of…
Q: 14) In imperfect competition, firms should produce and sell units until the equals the A) marginal…
A: When talking about imperfectly competitive market, it is the place where firms have incentive to…
Q: 4. Perfect competition is a hypothetical market form associated with neo- classical economic theory.…
A: An market is a collection of systems, institutions, processes, social relationships, and…
Q: 00-250
A: Marketers tend to provide a range of product or services choices for meeting the diverse consumer…
Q: Identify a market that resembles some of the key characteristics of a perfectly competitive market…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Examine the behavior of perfect competitive markets. How are prices determined in competitive…
A: The markets are the place where the buyers of various goods, and services tend to meet, and interact…
Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…
A: Answer 1 Profit is equal to Total cost subtract from the total revenue. In the above question we…
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: Explain by giving example the meaning of Economic profit
A: An economic profit or loss is the difference between the total revenue earned by the firm through…
Q: 2.The capability of a company to produce or increase output when resources are added is called…
A: "Since you have posted a question with multiple sub-parts and asked to answer from 2-6, we will…
Q: a) What market structure (kind of market) it represents? b) How many companies are included in this…
A:
Q: 6. Suppose that you have the data for the three firms below. What is HHI in this case? Firm Sale 500…
A: HHI=∑1NFi2Where, HHI=Herfindahl–Hirschman indexand, F= Number of firms
Q: 4. Complete the following schedule: Quantity 0 1 2 3 4 5 6 7 Total Cost $9 $12 $16 $21 $30 $40 $52…
A: Average total cost (ATC) = TCQ Marginal cost (MC) = ∆TC∆Q Following below is the complete schedule:…
Q: Explain how firms that compete in the four different market structures determine profitability. Use…
A: There square measure quite {an} few exclusive market systems which could characterize an economy.…
Q: Please explain the importance of good market research when starting a new business.
A: Market research refers to the conduct of a research with the potential coustmors in the market, to…
Q: 7. In the homogeneous product case, price is higher, quantity is competition. and profits are higher…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A perfect competition market structure means: a. difficulty entering & exiting the market b. a large…
A: A perfect competition is a type of market structure.
Q: 7. Which of the following is a benefit to a business of reducing its production times? A. It will…
A: Competitive advantage: - Competitive advantage is the ability to produce goods or services more…
Q: 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry…
A: Hi there! Thank you for the question. Since we only answer one question, we will answer the first…
10-
Step by step
Solved in 2 steps
- Topic: Market Structure 1.) Why Perfect Competition Usually Does Not Happen? 2.) Why is perfect competition is desirable ?38. A perfect competition market structure means: a. difficulty entering & exiting the market b. a large number of buyers & sellers c. working together to set prices d. little information is available to buyersa. A firm operating in a perfectly competitive market is earning K20 million economic profits. What is the firms accounting profits if the opportunity cost is K30 millionb. What will be the firm’s economic profits in the long run? c. Company ‘A’ has been recording accounting profits averaging K50 million by investing in project C. It could earn K60 million and K70 million in projects D and E, respectively. What is the company’s current economic profit? d. Advise management what to do in the long run e. Project ‘B’ has a net present value of zero after applying a discount rate of 10%, which is the risk adjusted required rate of return that takes into account the riskiness of the project. What return is earned on this project f. After a risk assessment, it is discovered that project ‘B’ has become more risky and the risk adjusted required return to use must be 12%. Will the net present value of project ‘B’ still remain zero?
- 1. A) What are the underlying assumptions associated with Perfect Competition? B) Explain why firms operating under Perfect Competition make normal economic profit in the long-run. C) Explain why Perfect Competition results in Allocative Efficiency. D)Explain why Perfect Competition results in Economic Efficiency.D6) Outline and critically assess the theory of perfect competition. To what extent does the theory provide useful guidance to: (i) business owners, and (ii) government policy makers interested in maximising consumer welfare?What does “perfect competition” mean? State and explain five (5) of the underlying assumptions.
- Multiple choice - microeconomics 39) A profit-maximizing firm in a competitive market produces small rubber balls. When the market price for small rubber balls falls below the minimum of its average total cost but still lies above the minimum of average variable cost, what happens to the firm? A. It will experience losses, but it will continue to produce rubber balls. B. It will be earning only accounting profits. C. It will be earning both economic and accounting profits. D. It will shut down. 38)Question 1 A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?9. a corn farmer will tend to expand his output as long as the price of corn exceeds aversge variabke cost and: a) marginal cost is smaller than the market price b) marginal revenue is larger than the market price of corn c) marginal revenue is positive d) marginal revenue is kess than the market price of corn
- Concept: Does Fairness Matter 1 In the presence of shortages, why would a firm, such as a restaurant with people waiting for a table or a theater with people waiting for a ticket, not raise prices when doing so would seem to increase profits? A. Increasing prices might result in short run gains at the expense of long run profits. B. Increasing prices might be seen as unfair. C. Increasing prices requires the firm to pay substantial "switching costs." D. Both a and b. E. All of the above.8- A business is below the economic break-even point and above the operational break-even point. Therefore, it can be said that: *a) gives operating and economic profitb) gives economic profit and operating lossc) gives operating profit and economic lossd) causes economic and operational loss29 Refer to Figure 2. If this farmer is maximizing profit, his operating profit (or loss) is (hint: operating profit: TR-VC)Select one: a. $48 b. -$24 c. $72 d. $156
