1. Perfectly competitive market demand is given by P = 100 - Q and market supply is given by P = Q. Each identical firm has MC= 10Q and constant ATC = 5. How much will %D each firm produce? а. б В. 5 С. 3 D.9
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A: * Hi there , as you have posted multiple question we will only solve the first one . Kindly repost…
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- The short-run market demand and supply for Kente cloth are expressed as follows: Demand: ? = 40 − 0.25? Supply: ? = 5 + 0.05? Marginal cost: −20 +4? a) The short-run level of output is ___________ metres.[1] 40.00[2] 5.05[3] 35.30[4] 20.00[5] 7.712. List the features that characterize a perfect competitive market. 3. What is a perfectly competitive market? Perfectly competitive markets establish capitalist justice and maximize utility in a way that respects buyers’ and sellers’ negative rights? Explain how and what types of negative rights are respected.[TRUE / FALSE] Please explain In the real-world, marginal cost curve is usually U-shaped.Therefore, in a perfectly competitive market, a firm can maximize profit at two different output levels in the short-run
- Why does the price level in a perfectly competitive market move toward the zero-profit point? A Because profitable firms increase short-run productivity B Because short-run losses reverse the effects of long-run gains C Because firms enter and exit the market in response to gains and losses D Because firms operate below the average cost curve9.- A competitive firm reaches the minimum of the long-run average cost for y = 20 when it operates with the short-run cost function C = yi3-20yi2 + 100yi + 8000, where yi is the production of the firm. Then the long-run price equilibrium will be 500. If the government imposes a specific tax on output of 40 euros, what are the taxes collected by the government in the short-run and in the long-run, if the market demand is given by x = 2500 - 3p, where x is the quantity demanded by consumers and p is the price? Will the government collect more or less taxes in the long-run than in the short-run? Why?true/false 1- if a perfectly competitive firm shuts down in the short run, its variable cost equals zero. 2- if a perfectly competitive firm shuts dowm in the short run, its total cost equals zero.
- Describe the course of events in a competitive market following theadoption of a new technology. What happens to output, price, andeconomic profit in the short run and in the long run?Explain whether the statement is valid on not. There are perfect knowledge among the buyers and sellers in a perfectly competitive marketDraw a long-run supply curve for a competitive market with identicalfirms, and describe its implications for profit-seeking firms
- In a perfect competition with 100 identical firms, short-run market supply function of qS=150P+30 and market demand for these firm’s products is Q = 8000 – 200P, the short-run equilibrium market price is 0.33. True or false. Show solution.***PLEASE NOTE: Only answers for parts B and C are needed. Part A is included for reference*** Q: Consider the market for solar power. Assume the market is perfectly competitive and initially in long-run equilibrium; solar power sells for $.25 per kwh (kilowatt hour). a. Draw 2 graphs, one to represent the market (supply and demand), and one to represent a single firm (demand, marginal cost, and average cost curves). Assume a u-shaped average cost curve. Show the equilibrium price and the quantity produced by the market (Q) and by each individual firm (q). b. Next, to encourage conservation, Congress taxes all forms of energy EXCEPT solar power, causing an increase in the demand for solar power. Show what happens to the market and the firm in the short run; indicate clearly what happens to price, quantity, and profit. c. What happens to the market and the firm in the long run? Indicate clearly what happens to price, quantity, and profit, for each the market and the firm.Course: Microeconomic - Production Function and Perfect Competence Markets Establish the veracity of the following comments and explain your answer.1. The long-run industry supply is always infinitely elastic, since the free entry and exit of firms forces it to be located at the long-run minimum average cost. Explain. Graph is needed. 2. Assuming that the prices of the factors of production remain constant and there are no entry barriers, in the face of a positive demand shock, the price in the industry in the long run will not be affected. Explain Graph is needed 3. In the short run, the supply curve of a perfectly competitive industry ALWAYS has a positive slope. Explain Graph is needed 4. In perfect competition, a firm's supply is given by the increasing part of the marginal cost function. Explain Graph is needed