Answered: 31. Which of the following is the best…

31. Which of the following is the best example of a perfectly competitive market? a. soft drinks b. farm products c. diamonds d. athletic shoes

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 28RQ: Will a perfectly competitive market display productive efficiency? Why or why not?

See similar textbooks

Related questions

Q: At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic…

A: Lin operates in a perfect market competition where, nor the buyers nor the sellers are the price…

Q: What are the assumptions of a perfectly competitive market. List them and explain each of them with…

A: Types of market structure that prevails in the market are perfect competition, monopoly, oligopoly…

Q: 1. Explain how the long run differs from the short run in pure competition. 2. The basic model of…

A: 1. In the short run, when plants and gear are fixed, the organizations in an absolutely competitive…

Q: in the long run, what will be the firm's profit maximizing quantity?

A: in the long run a perfectly competitive firm produce output at the minimum point of AC

Q: 3. You read in a business magazine that farmers are reaping high profits. With the theory of…

A: Perfect competition refers to a market where the commodity is homogenous in nature, there are large…

Q: long run in the market (In other words, will other firms join the market or exit the market? 2) If…

A: In the competitive condition, each production unit lacks any degree of market power because of its…

Q: 1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing…

A: Given: It is given that T's tennis ball manufacturing firm is operating under perfect competition…

Q: Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and…

A: In a perfectly competitive market there are large number of firms producing identical products thus…

Q: Q2. Ramzah owned a burger stands along the beach. Figure 2 shows Ramzah’s cost curves. Figure 2:…

A: There is many type of market in the economy we can discuss about the perfect competition market here…

Q: 1.(a) Explain with the help of a graph how a perfectly competitive firm determines its profit-…

A: The perfectly competitive market would result in large number of buyers and sellers in the market.…

Q: 3 examples of perfectly competitive markets and dose these firms profit in long run or short run

A: Perfect competition refers to the type of market structure where the firms are able to sell…

Q: What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit.…

A: The firm is an individual unit of the business which produce and sell the product in the market. The…

Q: Assume hotdog stands in New York are in a perfectly competitive market. Jacob is taking over a hot…

A: Hi student, thanks for posting the question. A per the guideline we are providing answer for the…

Q: Only answer question 6A

A: Total variable cost is the cost of producing an output which increases with an increase in the…

Q: explain four assumptions of perfectly competitive mar

A: In economics, the market for various products in the economy is differentiated on the basis of…

Q: What are the Characteristics of a Purely Competitive Market?

A: Characteristics of a Purely Competitive Market: The Purely competitive market is the market…

Q: jirm operates in a perfectly competitive market. If the market price (the price the firm must take)…

A: Perfect Competition is the one where there is infinite number of buyers and sellers and all the…

Q: a) How does imperfect competition differ from perfect competition? b) True or False and explain: If…

A: Ans. a In perfect competition there are large number of buyers and sellers and sellers are selling…

Q: Explain why economic profits in all perfectly competitive markets will tend toward zero in the long…

A: A perfectly competitive market is a market consist of large number of buyers and sellers, selling…

Q: What kind of business is a water refilling station? What problems are solved with the help of a…

A: 1) A water refilling station is a business where the supplier provides safe, and drinkable water to…

Q: 26 - What is the maximum profit condition in a perfectly competitive market? a) TC<MR B)…

A: A perfectly competitive market is the one in which there are numerous sellers and buyers and no…

Q: Q2. a. Create numbers for the table below TC TFC | TVC AVC ATC MC 1 3 4 6 7 9 10 b. Indicate a…

A: a) q TC TFC TVC MC AVC ATC 0 10 10 0 _ _ _ 1 18 10 8 8 8 18 2 31 10 21 13 10.5 15.5 3 45…

Q: perfectly competitive market

A: There are 2 types of market forms: Perfect and Imperfect market form. These includes different…

Q: Are condominiums considered imperfect competition or perfect competition in the market?

A: Market structures can be classified into four major categories. The following states the market…

Q: In perfect competition market, Firms have perfect knowledge of market. What does that mean?

A: A perfect competitive market structure has many buyers and sellers. All the firms are the price…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition is a market structure where are large numbers of buyers and sellers. The sellers…

Q: 1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing…

A: A perfectly competitive market is one where there are large number of buyers and sellers and the…

Q: 29. In the long run, a profit maximizing firm will choose to exit a market when a. fixei costs…

A: In the short-run, a firm exits a market if it is not able to cover its variable costs, i.e., it…

Q: 1. Consider the following graph: Price (dollars per cup) $6.00 MC ATC 3.50 Profit 2.50 Demand 0 1 2…

A: Consider the graph given below:

Q: What is the main feature of a perfect competitive market.

A: Perfect competitive market The term "perfectly competitive market" refers to a scenario in which a…

Q: you've been learning about what makes a market perfectly competitive, how a firm in a perfectly…

A: Perfectly competitive market: In this type of market there are a huge number of buyers and sellers…

Q: 2. Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price…

A: In an economy, oil is considered as a cruical resource because it can be used in various areas and…

Q: 9 The cereal has only two listed ingredients: wheat and a preservative. The retail price is C$4.50…

A: A nation can have a comparative advantage and be efficient in production of wheat. In such cases,…

Q: Table 8.7 Number of Fruit Baskets TFC TVC TC MC $50 $0 $50 -- 1 50 10 60 10 50 15 65 50 21 71 4 50…

A: A theoretical market structure that meets the following requirements is known as pure or perfect…

Q: A requirement for a perfectly competitive market is that the sellers sell identical products…

A: The perfect competition is a market condition in which there are many producers and the production…

Q: Is the firm maximizing profit? 2. What quantity of output should the firm produce in the long run

A: 1. Given the values: TC = 70 + 10q + 2q2MC = 10 +4q Price = MR = $20 At profit maximizing, MR=MC MR…

Q: nswer the following questions. 1. In the year 2000, the town of Cuenca in Batangas did not have…

A: There are different categories of market structure. Perfect competition, monopoly, monopolistic…

Q: S The table shows some of the costs of production for Frank's Firewood. The firewood market is a…

Q: Figure 16-12 Price 100 90 80 MC 'ATC 70 Fog 85 50 40 36 30 20 10 MR 4 12 16 20,24 28 32 Buaxtity d)…

A: Here, the given graph explains the situation under a firm with less competiton perfectly competitive…

Q: A. If a firm operating in a perfectly competitive market doubles the amount it sells, what happens…

A: a) Firms are price taker in perfectly competitive market. So, when the firm doubles the amount it…

Q: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…

Question

31. Which of the following is the best example of a perfectly competitive market?

soft drinks

farm products

diamonds

athletic shoes

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
Can you name five examples of perfectly competitive markets? Why or why not?
Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
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?
A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity of output?
Productive efficiency and allocative efficiency are two concepts achieved in the long mm in a perfectly competitive market. These are the two reasons why we call them perfect. How would you use these two concepts to analyze other market structures and label them imperfect?
Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient.
Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the film represents the costs to society. Can you think of some social costs or issues that are not included in the marginal cost to the firm? Or some social gains that are not included in what people pay for a good?
Will a perfectly competitive market display productive efficiency? Why or why not?