a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? c. Sketch on the graph and explain what happens to bring this market to long run equilibrium.

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 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: 1. Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to…

A: When all companies sell identical products, market share has no bearing on price, companies can…

Q: Can excess profit be earned in this industry in the long run?

A: Excess profit means an amount of profit which is higher than the total cost incurred in production.

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: graph shows the short run cot curve of a firm in a purely competitive market. Which of the following…

A: The profit maximizing output for the firm occurs where the (the upward sloping part of the) marginal…

Q: Based on the given graph: a. If this firm profit-maximizes, how much output will it produce and…

A: Given;

Q: In a two-panel diagram, graphically illustrate a perfect competitive market and firm showing the…

A: Perfect competition Market is the structure of the market where large numbers of buyers and sellers…

Q: a) What is meant by zero economic profit? (b) What are the conditions that need to be satisfied for…

A: Zero Economic Profit refers to no profit or no loss. It means that firm breakevens. In case of Zero…

Q: Distinguish the difference between the market demand curve and the demand curve that a particular…

A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…

Q: Give an example of a firm which competes in a competitive market. Explain. Suppose that the this…

A: Perfect competition is a benchmark, or "ideal market," to which real market designs can measure up.…

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: a. What is the profit maximizing level of output for the firm? b. What is the economic profit earned…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: 1.1) Complete the table.  1.2) Draw a graph for each AVC, ATC and MC on one graph.  1.3) Suppose…

A: Q TC TFC TVC AVC AFC ATC TR1( at p = 20) MC MR1 MR 2( at p= 60) 0 50 50 - - - - 0 - - - 1 70 50…

Q: The accompanying graphs represent the market for soybeans, a perfectly (purely) competitive market,…

A: Market equilibrium under perfect competition is the point where market demand is equal to the market…

Q: Assume that apples are produced in a perfectly competitive market. Columbia’s Orchard is a typical…

A: b) Given the apples have become popular and their demand has increased. This would shift the demand…

Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: 5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high…

A: In the long run, many new firms enter the perfectly competituve industry as they are attracted by…

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: Describe how your restaurant would maximize its short-run profits.

A: When an individual wants to open a business, his primary aim is to earn profit and maximize it by…

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: Question 17 Referring to Figure 1 in Question 14, When price is $175, will firms enter or exit the…

A: Perfect competition is a type of market structure.

Q: 08. Which of the following holds for a perfectly competitive firm that is in long-run competitive…

A: 08. Price is equal to marginal cost is long run competitive equilibrium condition of a perfectly…

Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…

A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…

Q: Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on…

A: 1. The firm is operating at the point where the marginal revenue equals the marginal cost in 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: Describe how we can identify a competitive firm’s short-run supply curve.

A: In a monetary market all production continuously happens in the short run. The short run is the…

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: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…

A: In the long-run, all the firm in a perfectly competitive market earns positive economic profit…

Q: Suppose the book-printing industry is competitive and begins in long-run equilibrium. a. Draw a…

A: a)  Typical firm in the industry The Above figure 1  shows the curves of a typical firm in the…

Q: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

A:

Q: What is the firms profit or loss?

A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…

Q: The market and Firm Fdg in a compettive market for Fidgets is at a long run equilibrium Suddenly the…

A: The markets are considered to be the places which are of utmost importance for the growth and…

Q: Predict and explain the long run equilibrium of a firm operating in a perfectly competitive market?

A: The structure of the market where there are a large number of buyers and sellers selling homogenous…

Q: please answer parts e, f, and g

A: Answer- "Thank you for submitting the questions. But, we are authorized to solve only three sub…

Q: xplanations.

A: In the long run,the profits and losses under perfectly competitive industry tend to get eliminated…

Q: Explain the difference between a firm's revenue and its profit. Which do firms maximize?

A: Revenue is the total amount received by selling the required units of goods or services.  Profit is…

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: What is the shutdown condition? a.A condition stating when a firm should cease to operate and…

A: The shut-down condition is applicable for short run, where a firm stops production if its revenue is…

Q: 1) If ATC is below the MR=P=AR=D line is there a profit or a loss? What will happen in the long run…

A: Average revenue (AR): - it is the per-unit revenue generated by selling goods or services which is…

Q: “That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost…

A:

Q: Label the curves in the following graph  A. At each market price p1, p2, p3 at what output level…

A: (a) To identify: The labeling of curves in the given diagram and the output levels corresponding to…

Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC 10…

A: Profit is maximized at a point where MR is equal to MC.