Describe how we can identify a competitive firm’s short-run supply curve.

Q: Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken…

A: In the long run, firm is producing output at the point where the average total cost tis minimum and…

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 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: rm

A: The short run supply curve In a perfectly competitive market is the curve of marginal cost being at…

Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…

A: Economic profit is defined as difference between revenue that is received from the sale of a good or…

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: 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: Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a…

A: If CEQ announces that the chemical in tuna helps to prevent from spreading, then the consumer will…

Q: Illustrate and explain how the short-run supply curve of a price-taking firm is determined.

A: In a price taking firm, the demand curve is a straight line parallel to x axis which is equal to…

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 is the short run supply curve of a perfect competitive firm. Expalin using illustrations

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

A: There are different market structures with different characteristics.

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: 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: What is the relationship between marginal cost and the short-run supply curve for the purely…

A: Supply curve is the graphical representation of direct relationship between price and quantity…

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

A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…

Q: How we can understand the Long-run Normal price in increasing cost industry, and the Long-run Normal…

A: When a business expands, its average expenses rise. This is known as an increasing-cost industry…

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: Explain the implications of large number of buyers and sellers in a perfectly competitive market.

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

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: The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely)…

A: In perfectly competitive market, price is constant and equal to marginal revenue. At profit…

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: 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: A perfectly competitive market arises when A) there are few buyers and many sellers. B) each of the…

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

Q: Draw a long-run supply curve for a competitive market with identicalfirms, and describe its…

A: The long‐run market supply curve is found by examining the responsiveness of short‐run market supply…

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: 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: Consider a perfectly competitive market where all firms produce using the same technology. The…

A: Consider the perfectly competitive market where all firms produce using the same technology. The…

Q: Explain why a company would shut down in the short run.

A: The shut down point is the point at which a firm decides to seize its operations in the short run…

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

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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: Give an example of a price at which this firm would want to produce and sell output in the short…

A:

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: What is the shutdown decision of the firm? How should a firm decide whether to continue business or…

A: For a perfectly competitive company, where the total revenue of the company, i.e. the product of its…

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: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: In the short-run, competitive firms want to shut down if     P = MC     P = AVC     P > AVC…

A: A perfectly completive market is where several sellers and buyers are involved in the exchange of an…