Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?
A: A market is the collection of buyers and sellers. There are different forms of markets based on…
Q: Can a perfectly competitive firm set its own market price?
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…
A: Perfect competition: Under the perfect competition market, the price is decided by the demand and…
Q: An accountant and an economist are looking at a firm’s records and market situation. The accountant…
A: Profit: It means the difference between the amount earned and the amount spent.
Q: was the west fraser timber company always been classified as perfectly competitive market in the…
A: When talking about the competitiveness of a firm, it can be said that it is determined by the market…
Q: In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there…
A: In the perfectly competitive market, firms are the price takers as they produce identical product…
Q: Strictly speaking, pure competition has never existed and probably never will. Then why study it?
A: ANS Pure competition is the form of market where there are many sellers & many buyers and the…
Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…
A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…
Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?
A: Given that the market structure is monopolistic competition, the profit maximizing condition is MC=…
Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…
A: Shutdown point is a point of production where a firm decides not to continue production as producing…
Q: Charlies's lawn-mowing service is a profit-maximizing.competitive firm. Bob mous lawns for $27 each.…
A: In perfect competition market firms are price taker . They have to accept the price determined by…
Q: An accountant and an economist are looking at a firm’s records and market situation. The accountant…
A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…
Q: What is the shape of the demand curve of a firm under perfect competition
A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…
Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…
A: Perfectly competitive market: It is a market structure where there exists a large number of buyers…
Q: A large city has nearly 500 restaurants, with new ones entering regularly as the population grows.…
A: A perfectly competitive market alludes to a market structure in which there are countless firms and…
Q: Explain Long run equilibrium for a perfect competition
A: The long-run equilibrium point for a perfectly competitive market is said to have occurred where the…
Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?
A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…
Q: A perfectly competitive firm showing a profit
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…
A: Perfect competition is a market structure in which there are many buyers and sellers. The price is…
Q: When can you say that their is presence of a strong perfect competition?
A: A real life example of perfectly competitive market is the farmers market. There are a large number…
Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate
A: In the long term, all production components are interchangeable. Free entrance and departure, as…
Q: Look at the chart for problem #2 based on perfect competition. The profit that this firm earns when…
A: Below is the given information: TR = P × QMR = TRn-TRn-1∆QATC = TCQMC = TCn-TCn-1∆Q
Q: You observed that in the long run, a profit-maximizing firm chose to exit a market. What can you…
A: There is a difference between the cost function in the short-run and in the long-run due to which…
Q: Explain why a perfectly competitive firm won’t advertise.
A: In perfect competition, there are a large number of buyers and sellers where the latter do not have…
Q: why does a purely competitive firm not charge a price below the market price?
A: A purely competitive firm is in the market with the following assumptions: 1. Identetical products…
Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…
A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…
Q: Graphically explain the profit maximization condition of a perfect competitive firm.
A: In the perfectly competitive market, a firm experiences a situation that the average revenue will be…
Q: At the point of equilibrium of firm (under perfect competition)
A: To find: What happens at point of equilibrium of firm.
Q: you read in a business magazine that the computer firms are reaping high profits. with the theory of…
A: In a perfectly competitive market, the new firms and easily join or leave the market. Basically, the…
Q: Using the figure above, what is profit/loss for the firm?
A: In the case of a profit-maximizing firm, the optimal point of production is where the price is equal…
Q: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.
A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…
Q: At the profit-maximizing output level, what will be the relationship between the perfectly…
A: Perfect competition: Perfect competition is a market structure where exists a large number of…
Q: What does that mean in terms of long-run profit?
A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…
Q: Why are abnormal profits of a firm difficult to sustain?
A: The abnormal profits under perfectly competitive market are difficult to sustain because of the free…
Q: It is difficult for firms to enter and exit a perfectly competitive market. True False
A: In perfect competition, there are many firms selling identical goods.
Q: Can you give examples of companies with perfect competition?
A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…
Q: The firm in pure competitive
A: A theoretical market structure that meets the following requirements is known as pure or perfect…
Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…
A: Acceptable loss means the loss which has to be accepted.This happens generally in perfectly…
Q: Instructions: Round your answers to the nearest whole number. (c) Calculate the firm's total profit.…
A:
Q: A perfectly competitive firm is making a loss if
A: We have to find a perfectly competitive firm is making a loss.
Q: In a perfectly competitive market ,why does the firm always break even in the long run ? Illustrate…
A: In perfect competition, in the very short run firms experience profits. However, new firms enter…
Q: Define a perfect competition market structure?
A: Market structure defines the features of a market in which the buyers and sellers interact to sell…
Q: . At the point of equilibrium of firm (under perfect competition)
A: To find : What happens at point of equilibrium of firm.
Q: Strictly speaking, pure competition is relatively rare. Then why study it?
A: Pure competition is a business condition where similar goods are sold by a wide number of individual…
Q: How does a change in the response rate affect profit?
A: A response rate refers to a rate that shows the number of people or participants who have responded…
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- Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers stayed at 2 and his budget remained 10 per week.) Draw Alphonsos new budget constraint. What happens to file opportunity cost of bus tickets?If the price of a magazine is 4 each, what is the maximum number of magazines she could buy in a week?Equilibrium price = 54.48 dollarsEquilibrium quantity = 2.89find answer of 2nd box and 3rd
- Rаnϲhеrs ϲаn rаisе еithеr ϲаttlе or shеер on thеir lаnd. What would cause ϲаusе thе suррly of shеер to inscrease? Typed answer please. I ll rate.a Guildrerian traded buys a 150 flop barrel of florish pickles by exchanging 15 gulps and a florish trader buys a 8 gulp crate of Guilderian apples by exchange 80 flops. Then the gulp appreciation to 25 flops per gulp, What price must the Guilderian pay for the same 150 flop of barrel pickles? b. How much must the Florish trader pay for the same 8 gulps crate of apples? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.explain ehat is happening here??
- Suppose the U.S. economy began to grow more rapidly than other counties in the world. What would be the likely impact on U.S. financial markets as part of the global economy?Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?Suppose that the cost of a movie ticket is $12, and a lattecosts $6. Why would the theater management say thecost of admission is $12 and not two lattes? Explain whyit is more efficient to compare the value of commoditiesin monetary terms.