20) What will a firm in a perfectly competitive industry do in the short-run if the price of its product decreases below the firm's average variable costs but still above average total costs? A) Do nothing B) Increase production C) Decrease production D) Shut down

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A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

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: Problem 2 All firms in a competitive industry have the following (long-run) total cost curve: C(q) =…

A: a) To get the long-run price of the market, initially it is required to ascertain q from the cost…

Q: Refer to Figure #1. The long-run supply curve for a firm in a perfectly competitive market is the…

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A: To expand profits in an entirely competitive market, firms set minor income equivalent to minimal…

Q: Q4. Which of the followings is an assumption for a perfectly competitive firm ? a) Product quality…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Consider the following demand and cost information on a perfectly competitive firm in the short run:…

A: The firm would produce at the output level of profit-maximizing (i.e., where the marginal cost is…

Q: In a short-run perfectly competitive market of tomatoes, when P=$9, firm X produces 0 and firm Y…

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Q: Problem IV: A perfectly competitive firm has a total cost function given by T C(Q) = 2Q3 – 20Q2 +…

A: since you have asked a multipart question and according to our policy we will only solve the first 3…

Q: Suppose that the following data are observed for a perfectly competitive firm: output = 5000 units,…

A: The perfect competition is the market structure with large number of buyers and sellers, selling…

Q: which shows the graph of a perfectly competitive firm in the short run. a) If the firm's demand…

A: Perfect competition is a business system where a homogeneous commodity is sold by several companies.…

Q: Which of the following is generally true in a perfectly competitive industry? * A firm's supply…

A: Firms aim to for profit maximization thus they tend to produce a profit maximizing quantity.

Q: Assuming that the CD manufacturing business is a perfectly competitive industry, explain why his…

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Q: In a perfectly competitive market, in the short-run, a firm shuts down if Their average cost is less…

A: A perfect competition market refers to the ideal market. This type of structure includes a variety…

Q: Assuming a horizontal long-run market supply curve, which of the following statements is (are) TRUE…

A: In the long run, a perfectly competitive firm produces at a level of output where P = MC = AC. At…

Q: Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry,…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: Under what condition will a competitive firm necessarly shut down its operations? What does this…

A: Meaning of Short-Run Supply Curve and Law of Supply: In short-run supply curve, the supply of…

Q: 1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y2 + 5y +…

A: a) In a perfectly competitive market, At equilibrium MC = P = AR= MR Cost function (TC) = 8y2 + 5y +…

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A: A perfectly competitive market could be a hypothetical market that's consisted of the many firms and…

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: Suppose you start a business of manufacturing computer software. Assume that this computer software…

A: In the short-run, a business unit assesses its total revenue against total variable cost due to sunk…

Q: A perfectly competitive industry is in long-run equilibrium. Each of the identical firms has a long-…

A: Perfect Competition Some Preliminaries: Long-run equilibrium is characterized by zero economic…

Q: Which of the following is true of perfectly competitive firm that keeps producing in the short run?…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The price…

Q: Consider a market structure of perfect competition where firms have a U-shaped average cost curve.…

A:

Q: 30) Which one of the following is true for a perfectly competitive industry? a) there are many big…

A: The market is the collection of buyers and sellers in which they exchange goods and services in…

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +…

A: Equating market demand = market supply, 500 - 5P = 320 + P 6P = 180 P = 30 Q = 320 + 30 = 350…

Q: Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of…

A: Perfectly competitive market is the one in which there are large number of buyers and sellers…

Q: n the short run, in order to maximize profit, a firm in a perfectly competitive market will operate…

A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…

Q: Consider a perfectly competitive market that was in a long-run equilibrium when a permanent increase…

A: A perfectly competitive market is one where there are several buyers and seller such that, all…

Q: Consider a perfectly competitive industry, where the current equilibrium price is p*=16 and the…

A: Given; P=16 Q=600 MC=4q AC=2q+5q

Q: In a certain perfectly competitive market, there are 150 firms, and the short-run total cost…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run.

A: Perfect competition refers to the type of market organization in which there are many buyers and…

Q: 39. A perfectly competitive firm maximizes its profit by producing the level of output so that its…

A: In a perfectly competitive industry there are large number of firms selling identical products.

Q: Short Questions: 1. What are the three conditions for long-run equilibrium for a firm in perfectly…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC…

A: Shut down points demonstrate that point where the firm will not be able to cover its average…

Q: draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly…

A: In a perfectly competitive industry, there is a large number of buyers and sellers. Firms sell…

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Q: The marginal revenue received by a firm in a perfectly competitive market: A) is greater than the…

A: As you have not mentioned the exact question to answer as per our policy I am answering first three…

Q: Suppose a firm in a perfectly competitive industry is currently producing output at its…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Suppose you start a business of manufacturing computer software. Assume that this computer software…

A: Given the fixed cost per month = 80,000 Total cost = 140000 Quantity of software = 1000 Average…

Q: C. Table below shows some cost data for a perfectly competitive firm i. Is the firm operating in…

A: The perfect competition is a type of market which is characterized by a large number of buyers and…

Q: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which…

A: Answer:- (B) Firms to leave the industry, market supply to fall, and product price to rise.

Q: Explain the three possible profit maximizing positions of perfectly competitive firms in the…

A: The various forms of market structure include perfect competition, oligopoly, monopoly, and…