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Explain equilibrium of a firm under
Explain its output, profit and
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- Show graphs of perfect competition in 3 situations profitable price, price causing loss and shutdown price and explain them in your own language.On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that is making a a) profit b) loss c) breaks even Note: Draw a separate diagram for each.Question: Under the assumption of perfect competition in short run firms only earn abnormal profit. True/False. Explain your answer theoretically and graphically.
- Define Perfect Competition. Explain the key points of perfect competition. Explain the concept of shutdown conditionExplain the short term equilibrium under perfect competition ( please do explain it with hand drawn diagram for better understanding)Discuss the long-run benefits of running a firm in perfect competition.
- is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the market and number of available sellers?Describe how profits and losses drive the long-run adjustment process of pure competition.Using diagrams derive a long-run market supply curve for 1)a constant-cost industry, 2)a decreasing-cost industry.
- Under the assumption of perfect competition in short run firms only earn abnormal profit. True/False. Explain your answer theoretically and graphically?The below attached diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland.Calculate the profit or loss for Sarah Mat and, examine the key characteristics for perfect competition firm with reference to Sarah’s farm.In perfect competition, price is _____________. increasing. decreasing. none of these answers. equal to marginal revenue.
