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

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

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 3.6P

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: If the market price for the perfectly competitive firm represented in Figure 1.5 is $4... Figure 1.5…

A: "In perfectly competitive market structure firms produce homogeneous products and are price taker.…

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: 36) Assume that all firms in a perfectly competitive industry are identical. In the long run, free…

A: In the competitive industry, the entry and exit decisions are primarily taken based on the profits…

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: 18. The firm's short-run supply curve will be: a The marginal cost curve b. The marginal cost curve…

A: We know that the supply is the quantity that is sold by a firm during a given period of time at a…

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: shows the short-run cost curves of a toy producer. There are 1,000 identical toy producers. Price…

A: In a perfectly competitive market structure there exists a large number of producers and consumers…

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: 1. Consider market adjustment from the short-run to the long-run under a perfectly competitive…

A: Since you posted multiple questions, we will provide you the answer of first question. If you want…

Q: 15) The competitive firm's long-run supply curve is that portion of the marginal cost curve that…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

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: 13) The cobalt mining company is perfectly competitive. Each existing firm and every potential…

A: As bartleby guidelines i only do first 3 parts

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: Claude’s Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its…

A: Since you have asked multiple question so we will solve the first question for you if you want…

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

A: (a) Quantity TVC MC 0 0 NA 1 100 100 2 180 80 3 220 40 4 300 80 5 390 90 6 500 110…

Q: 12. If the price is less than average total cost for a perfectly competitive firm in the short run,…

A: Perfect competition is the market structure where there are large no of buyers and sellers selling…

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: 13) The cobalt mining company is perfectly competitive. Each existing firm and every potential…

A: (a) Long run equilibrium price of cobalt = $5 Reasoning: Perfectly competitive firm earns 0…

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: A firm operating in a perfectly competitive market cannot increase its profit. Which of the…

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

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: here a) price is higher than marginal revenue

A: The long-run is defined as the period of time where there exist no fixed variables of production.

Q: 23. New firms will exit a perfectly competitive market when: a. average variable costs are less than…

A: Firms will exit the market or shut down production if it is not able to cover even its variable…

Q: Question 7 Perfect Competition & Shut down A firm has the following profit function Profits(q) =…

A: (a) Since you have given multiple sub-parts question, we will solve the first three sub-parts. If…

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: 24. New firms will exit a perfectly competitive market when: Average variable costs are less than…

A: In a Perfect Competition, firms sell homogenous products and are price takers.

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

A: A competitive firm is a price taker in the market. All the buyers and sellers have perfect…

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: 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: 11. The graph below shows the marginal revenue, marginal cost, and average total cost at different…

A: Prices are given for a perfectly competitive firm, and it could earn positive or negative profits…

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: 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: Question 12 (i) Monica can go to work today and earn $500. However, she is also thinking about…

A: 1. Opportunity Cost: It is the cost of the next best alternative forgone for doing an…

Q: the firm under Perfect Competition continues production in the short run even if the firm incurs…

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

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

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

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
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
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 $
26) The short run supply curve of a firm is a) marginal cost curve b) average total cost curve c) average variable cost curve d) marginal revenue curve
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.
Assume that a firm in a perfectly competitive industry has the following total cost schedule:OUTPUT (UNITS) TOTAL COST ($) 10 110 15 150 20 180 25 225 30 300 35 385 40 480a. Calculate a marginal cost and an average cost schedule for the firm. b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits? c. Is the industry in long-run equilibrium at this price?
ques. 46 The demand curve of a perfectly competitive firm is vertical. True False
7 What is the total variable cost? 8 Identify the firm's short-run supply curve. 9 Is the industry in a long-run equilibrium?
7. In the long-run market equilibrium, profits for a firm may be ___. (check all that apply) a. positive b. zero c. negative
16. The firm in the figure represents the cost structure for all firms in the industry. Describe the steps that will lead to long-run equilibrium in this market.
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
14. Zero economic profit earned by firms in a perfectly competitive market indicates that A firms will exit in the long run.B total revenue covers all variable costs of production exactly.C MR < AR.D P = ATC.E zero normal profit.