Answered: 31. In short-run equilibrium for a…

31. In short-run equilibrium for a competitive firm economic profits: Will be positive. b., Will be negative. Will be zero. d. May be positive, negative, or zero.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: 1. In a perfectly competitive market, the marginal : of the firms is horizontal. revenue curve

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

Q: 2. The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the…

A: The supply curve of a firm illustrates the relationship between the price and quantity supplied.…

Q: a. Complete the above table. b. Graph TFC curve, TVC curve and TC curve on the same graph. c.…

A: as per your request last two questions has been done TC=TFC+TVC MC= ∆TC/∆Q TR=P*Q MR=∆TR/∆Q

Q: 8-2 Determine the perfectly competitive firm's profit-maximizing output in the short run (Short-Run…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: QUESTION 7 • Explain the ettect of an increase in demand in a perfectly competitive market in the…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

Q: 3. True or False? d. A firm that receives a price larger than its average variable costs but less…

A: In the short run, a firm may operate with excess profit, normal profit, and even incurring loss. But…

Q: 3. Suppose you start a business of manufacturing computer software. company is a perfectly…

A: Given: The fixed cost = Tk. 60000 Total cost = Tk. 140000

Q: A) Assume that initially the market was in long run equilibrium with Price Po, and Qo. Illustrate…

Q: 1) Referring to Figure, at price $80, what is the profit-maximizing output in the short run? 2)…

A: This is a case of a perfect competition market. Here, in the short run Price= AR= MR = $80. The…

Q: 14 If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?…

A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…

Q: 46. The firms in a perfectly competitive are making an economic profit when new firms enter. the…

A: perfectly competition market is the market where large number of buyer and seller sell homogenous…

Q: In a perfectly competitive market, the market price is $23. At the current level of output, a firm…

A: 1) in perfect competitive market, there are many number of sellers and buyers which turns the market…

Q: 1. Draw short-run firm and industry competitive equilibriums for a perfectly competitive…

A: A perfectly competitive market is where there are a lot of buyers and sellers. The industry’s…

Q: (Short-Run Profit Maximization) A perfectly competitive firm has the following fixed and variable…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: 3. A profit-maximizing firm has the total-cost function C = - a? + 6x + 50 and sells into a…

Q: Assume that the firm is in perfect competition and the price is $ 80. Find maximum profit? A) $100…

A: Maximum profit in perfect competition market where Marginal Cost is equal to Price so here we find…

Q: below shows a perfectly competitive firm. What is the economic profit earned or loss incurred by the…

A: GIVEN the economic profit earned or loss incurred by the firm is

Q: C) Refer to the graph above. The fim should shut down if the price falls below accept the total loss…

A: Answer: (D). A firm's supply curve is the rising portion of the MC curve above the minimum average…

Q: 1. Consider a profit-maximizing firm that manufactures bolts in a perfectly competitive market and…

A: Here, the given graph shows the price, quantity and cost curves of a bolt manufacturing firm, which…

Q: 2. Assume a competitive firm with a cost function c(y) = y? + f. Prove that producer's surplus…

A: A cost function is a formula used to predict the cost that will be experienced at a certain activity…

Q: a. Complete the table. b. What is the highest profit or lowest loss available to this firm? c.…

A: Monopolistic Competition is a kind of imperfect market structure where a large number of firms…

Q: 3. In perfect competition, the firm's profit maximizing point is Where MR MIC O Where MR = MC c. In…

A: Answer - We need to find - In a perfect competition , the firm's profit maximizing point We will…

Q: Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost…

A: First, let us calculate marginal costs related to each unit of output. Marginal costs are: -, 100,…

Q: Illustrate short run profit maximization scenerio of a competitive firm in case of loss.

A: Competition is an economic market model in which several vendors sell items that are similar but not…

Q: Figure 9-16 $/q MC 6.70 6.00 ATC 4.90 AVC d = MR 4.00 2.80 2.60 b. 6 8 12 14 If the price-taker firm…

A: A perfectly competitive firm is a price taker and accepts the price as given.

Q: 25. Understand when firms in a perfectly competitive market will enter or exit an industry. Firms…

A: Perfectly competitive market: It is a market situation where there is a large number of buyers and…

Q: 5. (a) What do we mean by “price taker”? Explain why a firm in perfect competition is a price taker.…

A: A perfectly competitive market is a market in which there are many buyers and sellers selling an…

Q: a. zero b. No answer text provided. c. negative d. positive

A: Eqm (Equilibrium) is the term in which mkt SS(supply) &DD( demand) intersects each other &…

Q: 23. In case of perfect competition in the market A. O Marginal revenue curve always slopes upward B.…

A: When product is made, cost takes place and process of business builds up. Business can be of…

Q: 31. In short-run equilibrium for a competitive firm economic profits: Will be positive. Will be…

A: A competitive firm will be in equilibrium when its profit is maximized or loss is minimized. For…

Q: 5. Suppose a chenmical company is in a perfectly competitive industry and has a short run total cost…

A: Given SMC = q2 + 10q + 10 Price = 385

Q: 3. True or False? a. A firm will make a profit when the price it charges exceeds the average…

A: Answer: (a). False Explanation: A firm will make a profit when the price it charges exceeds the…

Q: In the long-run market equilibrium, profits for a firm may be ___. (check all that apply) a.…

A: Economic profit is the difference between total revenue and total cost. economic profit= TR-TC…

Q: 6. For a perfectly competitive firm, which of the following statement is wrong? A. It enjoys 0…

A: Characteristics of a perfectly competitive market are- 1. Large Number of buyers and sellers -…

Q: 7 What is the total variable cost? 8 Identify the firm's short-run supply curve. 9 Is the industry…

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

Q: (Short-Run Loss) Suppose a firm decides to shut down in the short run. What is the resulting loss?

A: When the price level is charged below the average variable cost, the firm forced to shut down. At…

Q: 2) Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or…

A: Long run: - it is the time period in which all factors of production become variable in other words…

Q: TABLE 8-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue…

Q: 12. An industry currently has 100 firms, all of which have fixed costs of $16 and average variable…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: 8. Which of the following markets comes close to satisfying the assumptions of a perfectly…

A: # A perfectly competetive market structure is characterized by large number of buyers and sellers.…

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

A: Profit maximization is that the method by that a corporation determines the evaluation, input, and…

Q: Assume that a firm in a perfectly competitive industry has the following total cost schedule:OUTPUT…

A: Perfect competition is a form of market where the firms under competition are many and produce…

Q: 3. Illustrate short run supply curve for a perfectly competitive firm and derive market supply…

A: In economics, the short run refers to the time horizon in which some inputs are variable while the…

Q: 2 b. Explain the situation when the firm under perfect competition continues production in the short…

A: Under the perfect competition, firms are price takers. The price of goods and services determined by…

Q: 3. A perfectly competitive industry has a large number of potential entrants. Each firm has an…

A: In perfect competition, the long-run equilibrium exists when:Long-run average cost = Long-run…

Question

In short-run equilibrium for a competitive firm economic profits?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
6. In the short-run market equilibrium, profits for a firm may be ___. (check all that apply) a. zero b. No answer text provided. c. negative d. positive
7. In the long-run market equilibrium, profits for a firm may be ___. (check all that apply) a. positive b. zero c. negative
4. A competitive firm’s short-run supply curve is its________ cost curve above its ________ cost curve.a. average total, marginalb. average variable, marginalc. marginal, average totald. marginal, average variable
31) If marginal revenue is less than marginal cost for a perfectly competitive firm , it should a) decrease production b) increase production c) not change production d) increase the price of its product
5. (a) What do we mean by “price taker”? Explain why a firm in perfect competition is a price taker.How is this price determined? Explain. (b) “The demand curve for a perfectly competitive firm ishorizontal and it is also the firm’s marginal revenue curve.” Explain.
37) In a perfectly competitive industry, the market price of the product is $15. Firm A is currently producing 300 units. The firm's marginal cost is $15, its fixed costs amount to $1000 and its average variable cost equals $10. Which one of the following is true for this firm?a) it’s profits are 500 $b) it’s profits are -500 $c) it’s profits are -1500 $d) it’s profits are 1500 $
(a) A competitive firm’s short-run supply curve depends on two curves. Which two exact curves are we talking about? (b) Clearly explain which portion/part of these curves provide us with the short-run supply curve of such a firm and which part is excluded from being considered a part of such a supply curve? (c) In this context, explain the economic reason why the short run supply curve of a competitive firm slopes upwards.
A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 At that optimal level of output, what profit (loss) does the firm earn?
A perfectly competitive firm faces the short-run cost schedule shown in Table 1. A) Assume market price declines to £9 per unit. If the firm’s average variable cost is £9.5, should the firm shut down in the short run? In the long run? Explain. B) If the firm is typical of other firms, what price will it charge in the long run? Explain.
Suppose a firm's long-run marginal cost curve is given by LMC(g) = 1000/ q. Is there a price p > 0 for which this firm is in long-run competitive equilibrium? yes no not enough information The answer is no, but I dont know why, please help.
. A firm in a perfectly competitive industry currently faces a market price of $20 and is maximizing profit by producing 500 units of output at this price. The firm’s total costs are $14,000, of which $5,000 are fixed costs. a) How much profit is the firm making? (Show how you determine this.) b) Should the firm continue to produce in the short run? Explain fully. c) Should the firm continue to produce in the long run? Explain clearly WHY the long run decision may be different than the short run decision, assuming the firm expects no changes in demand conditions.