an excess profit be earned in perfectly competitive markets in the long run. Explain.

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: 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: Use the following graph to answer the next question. MC ATC AVC 1.25 1.05 .90 .80 .65 .60 15 20 35…

A: Given: Market price = $1.25 Output produced at this price = 20 units  ATC corresponding to this…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: Consider the perfectly competitive market for tofu. Many people use tofu as a substitute for meat.…

A: A perfect market, also known as an atomistic market in economics, is defined by multiple idealizing…

Q: Explain the concept of supply curve? Show the relationship between the Short run supply curve and…

A: The supply curve is a graph that shows the relationship between the cost of a commodity or service…

Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: What are the characteristics of a perfectively competitive market?

A: There are different market structures with different characteristics.

Q: Assume that you have a representative farm producing wheat in a perfectly competitive market. The…

A: Firms, consumers, and investors get international products, services, and assets on the exchange…

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: 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: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

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: If new technology in a perfectly competitive market brings about a substantial reduction in costs of…

A: The term "perfect competition" refers to a fictional market structure in which all suppliers are…

Q: In Perfectly competitive market, firms are a price _________

A: # Perfectly competitive is a market structure whereby large number of buyers and sellers are there.…

Q: Could you explain what is the long run and short run of a firm in a market

A: Production by a firm depends upon the time period. In the short run, the production possibilities of…

Q: In the short run, a competitive firms supply curve is

A: A perfectly competitive firm is price taker in nature, and hence faced a horizontal demand curve.

Q: In a perfectly competitive market, how do we go from a short run equilibrium to a long run…

A: A perfect competitive market is one there many firms offer homogenous product to a large group of…

Q: You are operating in a perfect market are you are price taker? Why?

A: The perfect competitive market is a type of market, which is characterized by a large number of…

Q: Does a competitive firm’s price equal its marginalcost in the short run, in the long run, or…

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

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: Imagine a firm in a perfectly competitive market. The firm is currently making an economic profit.…

A: Perfect competition happens when all organizations sell indistinguishable items, market proportion…

Q: Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price…

A:

Q: List the requirements for a perfectly competitive goods market.

A: For a particular production process, there has to be some factors of production available. For…

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: Explain how the long run differs from the short run in pure competition.

A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…

Q: Why are firms called price takers in a perfectly competitive market? Why do different firms produce…

A: A perfectly competitive firm is known as a price taker, because the pressure of competing firms…

Q: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…

A: The markets are the place where the buyers and sellers of the goods, and services meet and interact…

Q: What is the main feature of a perfect competitive market.

A: Perfect competitive market The term "perfectly competitive market" refers to a scenario in which a…

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: 140 123.33 90 56.67 Price 100 133.33 -MR MC ATC Demand Quantity

A: Here, the given graph shows the revenue, demand, and cost curves of a firm.

Q: S The table shows some of the costs of production for Frank's Firewood. The firewood market is a…

A:

Q: Draw the two graphs and explain the market conditions at $50, $60 in the short run & the return to…

A: * ANSWER :-

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

A:

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: What is the short run Supply Curve for a competitive firm?

A: In perfect competition, the short-run supply curve is the marginal cost curve (MC) at and below the…

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.

Q: The market supply curve in a perfectly competitive market is typically?

A: A firm in a perfectly competitive market is a price taker. It has a supply curve which is the rising…

Q: In the long run, a perfectly competitive firm can

A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…

Q: The market for which product best fits the definitionof a perfectly competitive market?a. eggsb. tap…

A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers…

Q: -run equilibrium in a perfectly competitive market, firms earn positive economic profits.   Is…

A: A perfect competition is where there is free market entry for the firms. If the firm earns profits…

Q: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…