At what point does a firm in a perfectly competitive industry shut down? Explain with graph.

Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…

A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…

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

A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…

Q: Using diagrams, explain why a perfect competition firm can only make a normal profit in the long…

A: The perfect competition is the Market where there are large number of buyers and sellers who deals…

Q: If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you…

A: Any manager worth his salt would aspire to maximize profits and minimize losses.  When the total…

Q: Given the following information, state whether the perfectly competitive firm should shut down or…

A: The firm's production decision in short-run is based only on the variable cost and not fixed cost.…

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: Please give an example of a market that comes close to being considered perfectly competitive. What…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: Question 12 The possibility that a firm may earn losses raises a question. must the perfect…

A: The representation of perfect competition directs to a theoretical market structure. In a perfect…

Q: Vhen a purely competitive industry is in long-run equilibrium, which statement is true?

A: A purely competitive market is a market in which all the firms sell an identical product and no firm…

Q: Why do you think a firm in a perfectly competitive industry does not have market power?

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

Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the…

A: Here, the given graph shows the marginal cost and average cost of producing doughnuts by the firm in…

Q: Using graph, explain when the firm maximizes its profit under perfect competition?

A: A perfect competition is a market where the firm has a control on quantity of goods to be produced…

Q: Discuss the long-run benefits of running a firm in perfect competition.

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Q: R MC AC E Po P = MR = AR C Qo Quantity Revenue and cost

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

Q: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. label…

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

Q: When can you say that their is presence of a strong perfect competition?

A: A real life example of perfectly competitive market is the farmers market. There are a large number…

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: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. Label…

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

Q: How do perfectly competitive firms make output decisions. Discuss in detail.

A: In a perfectly competitive market structure there exists a large number of buyers and sellers of the…

Q: QUESTION 7 Which of the following will not hold true for a competitive firm in long-run equilibrium?…

A: A perfectly competitive firm is one that is unable to generate an economic profit in the long-run…

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: Sterling runs a donut shop which which is being operated in a perfectly competitive market where…

A: Firms in perfectly competitive market, are price taking firms because there are a large number of…

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: 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: perfectly competitive market

A: There are 2 types of market forms: Perfect and Imperfect market form. These includes different…

Q: 2. Show and explain the equilibrium in the short run for a perfectly competitive firm. Why…

A: Under perfect competition, there are a large number of firms who sell identical products. The…

Q: Explain why a perfectly competitive firm would or would not advertise.

A: Perfect competition refers to the type of market organization in which there are many buyers and…

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: List the characteristics needed for a perfectly competitive market. Provide a simple explanation of…

A: A perfectly competitive market is the market in which there are lots of buyers and sellers, buying…

Q: what are the formulas? how do you complete the matching?

A: The income generated by a firm from total sales of goods and services is called total revenue…

Q: The following attached graph represents the situation of Sindbad’s caps, a firm selling caps in the…

A: In a competitive market, the firm will earn more and more profits when the revenue that is marginal…

Q: Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to…

A: When perfectly competitive markets combine with utility-maximizing buyers, the resulting quantity of…

Q: how does firm maximize its profit in perfect competition? discuss in detail with help of graph. also…

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: 5. Short-run equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 120…

A: We are going to find the Supply schedule for 120 firms with the help of Supply schedule for a single…

Q: Complete the table and answer the following questions. The price for this perfectly competitive firm…

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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: 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: What is the meaning of " acceptable loss " for a perfectly competitive firm ? Drawa graph and…

A:

Q: Explain why in the long run perfect competitive firms can only break even.

A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…

Q: xplanations.

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

Q: If a perfectly competitive firm is incurring an economic loss, it ontinues to operate until either…

A: A choice to shut down implies that the firm is briefly suspending creation. It doesn't imply that…

Q: Explain how the firm would maximise its profit, assuming that it faces conditions of perfect…

A: The term "perfect competition" refers to a market structure that exists only in theory. There are no…

Q: The following table shows information for Hayek’s Maps, a perfectly competitive firm.   a. Complete…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only one question…

Q: Hi there can you please help me to answer the following question 1. Explain, with the aid of a…

A: A perfectly competitive firm can either earn profit or incur a loss. The firm incurs two types of…

Q: Describe a perfectly competitive market structure and its characteristics?

A: Perfectly competitive market structure is the market structure in which,there is no or negligible…