Q: Which of the following is NOT an assumption of perfect competition? Select one: a. There are no…
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: In pure competition, the marginal revenue of a firm always equals a. total revenue b. average total…
A: In perfectly competitive market, a firm has perfectly elastic demand curve which means the firm can…
Q: Explain the features of large numbers of the sellers and the buyers in the perfect competition
A: There are many market in economy like monopoly , monopolistic , perfect competition , oligopoly ,…
Q: Will a Perfectly competitive market display productive efficiently? Why or why not?
A: A perfectly competitive market is the one where there are a large number of buyers (consumers) or…
Q: A profit maximizing firm will produce an output, if it chooses to produce, where A marginal revenue…
A: Answer: Correct option: A (marginal revenue equals marginal cost) Explanation: A firm maximizes its…
Q: а. List out the main characteristics of a competitive market
A: A competitive market is one in which no single customer or producer has significant market power.…
Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.
A: In perfect competition, there is homogeneity in the products sold by the consumers. This means that…
Q: Which of the following is not an assumption of perfect competition? (a) There are no restrictions on…
A: Perfect competition is a market situation which rarely exist in practice. It is a market structure…
Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…
A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…
Q: Is there perfect competition in the food delivery market? Why and How?
A: Monopoly, Oligopoly, Monopolistic Competitive forces, and Perfect Competition are the four market…
Q: perfectly competitve firms respond to changing market conditions by varying their (choose 1 below)…
A: A totally cutthroat firm can sell as huge an amount as it wishes, as long as it acknowledges the…
Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Which of the following is NOT a characteristic of perfect competition?
A: To find: Which of the following is NOT a characteristic of perfect competition?
Q: In perfect competition, a firm can maximize profit by producing at a quantity where price Is lower…
A: In perfect competition there are large number of firms selling identical goods.
Q: Which of the following is not necessarily a characteristic of perfect competition? low pricesa large…
A: The implications of perfect competition are as follows: (i) The price is determined by the forces of…
Q: What are three short-run outcomes in the perfect competition? When a firm takes the short-down…
A: A perfect competition is a market structure in which many vendors and buyers are present. In this…
Q: Under perfect competition, which of the following are the same (equal) at all levels of output? a.…
A: Perfect Competition is the market structure where there are large number of buyers and sellers. They…
Q: When discussing pure competition, the term long run refers to a period of time long enough to allow:…
A: Option ‘c’ is the correct answer. Option ‘c’ - Because Option ‘a’ and ‘b’ both are correct. Hence,…
Q: Are Shoppe and Lazada considered as a perfect competition? Why do you think that is?
A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…
Q: The diagram below depicts the market for smart mobile phones for selected brands. Apple Iphone Price…
A: In a market, the value map is used to define the value of a specific firm in the market on the basis…
Q: Which of the following is within the control of the perfect competitor? the selling price none of…
A: In the perfectly competitive market, it can be seen that the firms have very little or no market…
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: True/False In Perfect competition market, differentiated goods are sold.
A: # In perfectly competitive market we have many buyer and sellers interacting with each other. There…
Q: What term refers to companies shaping their actions based on what their competitors do? allocative…
A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…
Q: Explain the feature of the large number of the sellers and the buyers in the perfect competition
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: In a market with perfect competition, Prices are set by businesses. businesses confronting an…
A: Technically, perfect competition creates a monopoly that enables a business to set any price because…
Q: Why is Perfect Competition an ideal market structure? Please explain
A: In a market, a perfect competition is considered as an ideal market when there is other markets like…
Q: Please explain the importance of good market research when starting a new business.
A: Introduction: Market research helps you find purchasers for your firm. client behavior and economic…
Q: Why does perfect competitive market need to be maintained?
A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…
Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
A: Perfect competition is a type of market which has large number of sellers and buyers. All of them…
Q: The decision to continue competing in a market depends upon the answers to the following questions…
A: To sustain in the market ones have to bear the fixed cost in the short run as we know. Compete with…
Q: In perfect competition, price is _____________. increasing. decreasing. none of…
A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.
Q: What determining factor do buyers use to select products in a pure competition market? A. Brand B.…
A: Pure competition is a market system in which several firms compete for the same clients. The optimum…
Q: Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC…
A: A perfectly competitive market is one where there are large number of buyers and sellers. The good…
Q: Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it…
A: Given that the firm is profit maximizing firm so it will produce output Q where its marginal cost…
Q: When price is less than marginal cost, a profit-maximizing producer in perfect competition will:
A: In the case of perfect competition, each firm takes the market price as given and hence produces an…
Q: In the long run, if price is less than average cost, there is an incentive for firms to exit the…
A: The perfect competition is the type of market structure where there are large number of firms and…
Q: Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors…
A: Perfect Competition is a market situation where there are large number of buyer and seller s dealing…
Q: A firm in perfect competition has no influence on market price True False
A: Pure or perfect competition is a market structure which has following features : All firms sell an…
Q: In the perfect competition market structure price is equal to marginal revenue average variable cost
A: Perfect competition refers to a market structure, in which a large number of sellers sell…
Q: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: In Perfect Competition, Demand shifts produce greater price adjustments and smaller quantity…
A: In a perfectly competitive market, it can be seen that the demand and supply of any product have…
Q: Which of the following is not a characteristic of perfect competition? A. Many buyers and many…
A: In a perfectly competitive market, there are many small buyers and many small sellers, each are too…
Q: In perfect competition, the maximum benefit is achieved where the vertical difference between total…
A: Perfect competition is characterized by free entry and exists, no barriers, no transaction costs,…
Q: Which industry approximates the perfect competition among the following? A. Pharmaceuticals…
A: Option (B).
Q: Q2. In Pakistan, there are several farmers in various situations, selling identical products to the…
A: Perfect competition refers to a market structure in which there are a large number of buyers and…
Q: What form of competition best characterizes this market? What characteristics did you identify that…
A: Monopolistic competition: The salient feature of monopolistic competitive market is product…
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- Good Grapes is selling grapes in a purely competitive market. Its output is 5,000 pounds, which it sells for $5 a pound. At the 5,000-pound level of output, the average variable cost is $4.00, the marginal cost is $4.25, and the average total cost is $4.50 a pound. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine the optimal level of output?Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average total cost is $7.50, and the marginal cost is $10.00. What would you expect the firm to do in the short run? The market in the long run?Doggy Treats is selling dog treats in a purely competitive market. Its output is 800 treats, which it sells for $10 a treat. At the 800-treat level of output, the marginal cost is $11, the average total cost is $9.00, and the average variable cost is $8.00. Should the firm increase output, decrease output, or not produce? Why? How should the firm determine that optimal level of output?
- Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly firm?Perfect Competition in the Long Run and Efficiency Scenario Imagine a market where there is perfect competition between two or more companies, such as a fish market where vendors offer the same product at the same price or online ticket auctions like StubHub. In this market there are four key elements to perfect competition: A large number of buyers and sellers: No barriers to entry or exit: Perfect mobility for customers choosing products: Homogenous products. Explain how output, price, and profit are determined in your perfectly competitive market in the long run. How does that lead to efficiency? How could changes in technology affect the market? How could an increase in demand affect the market?What are the effects of new businesses entering the market?What are the effects of businesses leaving the market?Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?What is meant by selling cost? Name one market where selling cost is applicable
- Draw the short-run ATC, AVC, MC, MR and Demand graphs for a perfectly competitive market experiencing a profit. In each part, show Total Cost (TC), Total Revenue (TR), shade the profit. Clearly label Q for the equilibrium quantity point and P for market price point.Which of the below changes in demand in the long-run would lead to entry in the perfectly competitive market for wheat? a. a decrease in the number of buyers b. a decrease in buyers' expected price of wheat c. an increase in income (wheat is a normal good) d. both a) and b) would lead to long-run entry in perfect competitionUsing the graph for the questions : A. There are fixed costs of $50 no matter what the output level is. Fill in the fixed cost column B. Fill in the total costs column C. Fill in the marginal costs column D. This is a perfectly compatible firm . The market price for the output they produce is $40/ unit of output. Fill in the marginal revenue column E. Fill in the total revenue column F. Fill in the profit column G. What is the profit maximizing level of output
