A perfectly competitive firm's demand curve is perfectly elastic at the market-determined price.   a.  True   b.  False

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: 8. 4. A firm in a perfectly competitive market will operate in the short run as long as its price…

A: Variable cost is a cost varying in response to a change in output level. These costs are a function…

Q: 5. A perfectly competitive firm faces a _______ demand curve for its product. a. vertical   b. unit…

A: Option E  A perfectly competitive firm faces a horizontal demand curve for its product. This means…

Q: Question 14 Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the…

A: The profit is the excess revenue made by the firm after deducting the total cost of production from…

Q: QUESTION 7 • Explain the ettect of an increase in demand in a perfectly competitive market in the…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

Q: A perfectly competitive firm's demand curve is perfectly elastic at the market-determined price.…

A: Given  The statement is A perfectly competitive firm's demand curve is perfectly elastic at the…

Q: 1) Referring to Figure, at price $80, what is the profit-maximizing output in the short run? 2)…

A: This is a case of a perfect competition market. Here, in the short run Price= AR= MR = $80. The…

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: the long-run equilibrium, all firms in a perfectly competitive market earn zero economic profit.…

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

Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the…

A: In perfect competition there are large no of buyers and sellers and all the buyers are price taker.…

Q: Consider the graphs of a constant cost industry and a perfectly competitive firm within it.…

A: (a)   The long run equilibrium in a perfect competitive market can be illustrated as follows.

Q: Are market supply curves typically more elastic in the short run or in the long run? Explain.

A: Elasticity is the ability of one economic variable, like the amount required, to alter in response…

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: 2. For a firm in a perfectly competitive market, the total revenue curve is unusually easy to draw.…

A: Perfectly competitive market refers to those Markets where large numbers of sellers and buyers…

Q: 3. In competitive markets economic profit becomes zero in the long-run. However, it is also possible…

A: In competitive markets,economic profits become zero in the long run but accounting profit can be…

Q: Refer to the information provided in Table 8.2 below to answer the question(s) that follow. Show…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: #10. The market for watches is perfectly competitive and is currently in equilibrium. What will…

A: Perfect competition is a market structure where there is a large number of buyers and sellers…

Q: a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting…

A: Costs Revenues Quantity Produced Total Cost $ Marginal Cost Quantity Produced Price $ Total…

Q: 5. A firm produces a product in a competitive industry and has a total cost of function…

A: A competitive industry is an industry in which there are many firms that sell easily substitutable…

Q: 6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to…

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

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: 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: 1. A) What are the underlying assumptions associated with Perfect Competition? B) Explain why firms…

A: A. The assumptions based on the perfect competition are as follows: There are a large number of…

Q: 4 In the market for running shoes, all the firms face a similar demand curve and have similar cost…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1,…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 10. The diagram shows the price, marginal cost and average cost curves facing a perfectly…

A: The key characteristic of a perfect competition firm where the P=Demand = Marginal revenue or we can…

Q: 10 In the long run a perfectly competitive industry will have all firms making profits O all firms…

A: A perfectly competitive industry is one in which a larger number of sellers are allowed to offer…

Q: flat demand curves; easy exit; easy entry

A: Answer Option (a). Flat demand curves easy exit, easy entry. Explanation- In perfect competition,…

Q: (a) Why the competitive firm faces a relatively horizontal demand curve.  (b) The profit…

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

Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…

A: Perfect competition this is a type of a market structure.

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: 6. The following figure shows long-run average and marginal cost curves for a competitive firm. The…

A: The measure that depicts expenses being incurred by the entity for carrying out its day-to-day…

Q: 6. A firm sells its product in a perfectly competitive market where other firms charge a price of…

A: In a market, a firm produces at the level where the marginal revenue earned from the last unit…

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

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

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: 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: 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: 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: 1. In the short run, the market price is $8. What is the profit maximizing output for this firm? 2.…

A: Note : Since the question contains multiple sub parts, only the first three sub parts shall be…

Q: Let's suppose that a perfectly competitive firm has the following revenue and cost data. How many…

A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…

Q: 31. Which of the following is the best example of a perfectly competitive market? a. soft drinks b.…

A: Perfectly competitive market is characterized by the • many sellers  and many buyers • homogeneous…

Q: Given perfect competition show on a diagram that profit maximisation implies marginal revenue equals…

A: So as to understand the profit maximization under perfect competition relating to MC &amp; MR along…

Q: 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry…

A: Hi there! Thank you for the question. Since we only answer one question, we will answer the first…

Q: 1. Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of…

A: The typical cost functions are given in the next step.

Q: 33) At the profit-maximizing level of output for a perfectly competitive firm A) price equals…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…