A perfectly competitive firm is making a loss if

Q: Determine and explain the profit maximization output of a perfectly competitive firm.

A: Perfect competition is a competition where both buyers and sellers have perfect information about a…

Q: Perfectly competitive firm that makes economic loses in the short run must cease its operations. do…

A: Perfectly competitive firm is a price taker because there are many sellers in the market selling…

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…

A: In a perfectly competitive market, there will be a large number of sellers, which means that a…

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: Why does a purely competitive firm not charge price above the market price?  Why does it not charge…

A: In a perfect competition market structure, there exist a large number of buyers and a large number…

Q: A perfectly competitive firm that is maximizing profits will experience which of the following price…

A: Perfect competitive market has large number of buyers and sellers, has free entry and exit of firms…

Q: Do you agree with the following statement and explain why! "A firm that operates in a perfectly…

A: Perfectly competitive market is a market where there are many buyers and sellers in the market…

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: Explain why perfectly competitive firms are classified as a price taker

A: Answer - Price Taker Firm - The price taker firm are those firm who has not the ability to influence…

Q: Show and explain how the short run supply curve of the perfectly competitive firm is derived.

A: in a perfectly competitive market there are large number of firms producing similar and identical…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Marginal Revenue is the cash a firm makes for each extra deal. As such, it decides how much a firm…

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: Explain why a perfectly competitive firm earns zero economic profits in the long run.

A: In an economy, different types of markets exist to make an exchange of different types of products.…

Q: What is the shape of the demand curve faced by a firm under perfect competition?

A: Perfect competition, according to economic theory, occurs when all companies sell identical items,…

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?

A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…

Q: Under what conditions should a competitive firm shut down in the short run?

A: In the short term, a corporation that operates at a loss (where the income is less than the overall…

Q: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Which of the following is true for a perfectly competitive industry?

A: option 3 is rhe correct answer The firm in industry produce standardized products  It's dentical…

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: Goldbar is an energy bar firm selling in a perfectly competitive market but is considering the…

A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…

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: The graph depicts the average total cost curve for a perfectly competitive firm. At the long-run…

A: In a perfectly competitive market, price is constant at all levels of output so it is equal to…

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: Which of the following is true of perfectly competitive firm that keeps producing in the short run?…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The price…

Q: 30) Which one of the following is true for a perfectly competitive industry? a) there are many big…

A: The market is the collection of buyers and sellers in which they exchange goods and services in…

Q: Consider a perfectly competitive market for wheat in San Diego. There are 80 firms in the industry,…

A: No of firms in the industry = 80 Supply curve of each firm starts with minimum AVC and is equal to…

Q: In the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC P = MC All…

A: Perfectly competitive market refers to a market structure where there are many firms and buyers.…

Q: ques. 46 The demand curve of a perfectly competitive firm is vertical. True False

A: A perfectly competitive market is a market, in which the number of buyers and sellers are infinite.…

Q: Identify a perfectly competitive firm

A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…

Q: Perfectly competitive firms will react to profits in the long run by _______ production.

A: The market is a location where the transaction of services and commodities takes place.

Q: What is the most important decision a perfectly competitive firm must make to maximize profit? what…

A: In a perfectly competitive market, there are many buyers and sellers. The good produced is…

Q: Explain why P=MC in the short run equilibrium of the perfectly competitive firm, whereas in long run…

A: Economic efficiency includes the allocative (P = MC) and productive (MC = AC) efficiencies. Both…

Q: the profit maximization condition for a perfectly competitive firm in the short-run- is

A: Perfect competition is the market form that involves a large number of buyers and sellers in the…

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: Explain what the long run profit conditions are for a perfectly competitive market

A: Perfectly Competitive Market is the one where there are large number of buyers and sellers, selling…

Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…

A: In perfectly competitive market, there are large number of firms selling identical goods.

Q: Graph the following for a perfectly competitive firm: A graph for short run economic loss for the…

A: In perfect competitive market, there are number of buyers and sellers, selling similar products.…

Q: in a perfectly competitive industry, in the long run, firms earn a positive economic profit firms…

A: In financial matters, explicitly broad balance hypothesis, an ideal market, otherwise called an…

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: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: A single firm in a perfectly competitive market is relatively small compared to the rest of the…

A: In the ‘perfect competition(PC)’ all firms sell ‘identical products’ that are homogeneous. Here all…

Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…

A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…

Q: perfectly competitive firm incurs an economic loss, it should: a

A: ANSWER   a perfectly competitive firm incurs an economic loss, it should is

Q: If marginal revenue is less than marginal cost for a perfectly competitive firm , it should a)…

A: Marginal revenue is the amount of Revenue one could gain from selling one additional unit.  Marginal…

Q: In a perfectly competitive market, firms:

A: When there are large number of buyers and sellers in the market striving  for a product then there…

Q: Question When a perfectly competitive firm is at the profit maximizing output level what will be the…

A: Perfectly competitive market: In a perfectly competitive market structure, there exists a large…

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

A: The various forms of market structure include perfect competition, oligopoly, monopoly, and…

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.