27- Under perfect competition, entry of new firms into the market in the long run tends to: Select one: a. raise the level of profit of the existing firms. b. reduce the market power of the existing firms. c. raise the aggregate supply. d. raise the aggregate demand for goods. e. reduce the degree of competitiveness in the market. With neat explanation

27- Under perfect competition, entry of new firms into the market in the long run tends to: Select one: a. raise the level of profit of the existing firms. b. reduce the market power of the existing firms. c. raise the aggregate supply. d. raise the aggregate demand for goods. e. reduce the degree of competitiveness in the market. With neat explanation

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 1CQQ

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27- Under perfect competition, entry of new firms into the market in the long run tends to: Select one: a. raise the level of profit of the existing firms. b. reduce the market power of the existing firms. c.raise the aggregate supply. d. raise the aggregate demand for goods. e. reduce the degree of competitiveness in the market.
26.A firm operates in a perfectly competitive market and is producing at the profit-maximizing output. It is incurring economic losses. Based on this information, which of the following is true? A-Average total cost = price; marginal cost > marginal revenue. B-Average total cost = price; marginal cost = marginal revenue C-Average total cost > price; marginal cost = marginal revenue D-Average total cost > price; marginal cost > marginal revenue E-Average total cost < price; marginal cost > marginal revenue 27.In the short run, a price-taking firm decides to produce zero units of output. Which of the following must have been the case? A-The market price was less than the firm's average variable cost. B-The firm was earning normal profits in the short run but projected economic losses in the long run. C-The firm's average total cost was higher than its average revenue. D-The market price was between the firm's average variable cost and average total cost. E-The…
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.
1. Identify a market that resembles some of the key characteristics of a perfectly competitive market and discuss each of these characteristics of the market in detail 2. Has any particular firm in this market found a way to differentiate or distinguish itself from its competitors? If so, what did the firm do? If not, what prevents the firm from differentiating itself?
3 examples of perfectly competitive markets and does these firms profit in long run or short run
3 examples of perfectly competitive markets and dose these firms profit in long run or short run
2- What is the general decision rule used by perfectly competitive firms to maximize profits? On a graph, indicate the long- and short-run supply curves of the firm. Explain clearly why there is a difference. Why would a firm stay open and take losses in the short-run?
3). DOORDASH How can Data Analytics Improve the advantages DoorDash has on the competition Include such economic ideas such as the Three Inputs we discuss, the Idea of R&D in this process What are two fixed costs for DoorDash and two Variable Costs? What are three Barriers to Entry that limit Perfect Competition in this industry? What are the Determinants of Supply in Economics and how do two of them relate to DoorDash?
33 - Which of the following will maximize profit? a) MR=TC B) MR=AC C) MC=TC D) MC=AC TO) MC=MR
Do entry and exit occur in the short run, the long run, both, or neither?
(b) The profit maximization rule for a perfectly competitive firm states that the perfectly competitive firm will maximize its profits when it produces that quantity where marginal revenue equals marginal cost for the last unit produced and sold. In your own words explain why the firm is better off producing that quantity where MR = MC rather than that quantity where MR > MC or that quantity where MR < MC.
2. 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.