Explain how the firm would maximise its profit, assuming that it faces conditions of perfect competition, in both the short run and the long run. Be careful to explain the conditions under which the firm would shut down or close.

Q: Why is marginal revenue for a firm in perfect competition equal to the market price?

A: The increase in revenue that comes from selling one more unit of output is known as marginal revenue…

Q: Which of the following distinguishes the short run from the long run in pure competition?

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Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?

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Q: normal profit

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Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.

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Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…

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

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Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…

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Q: Why does a purely competitive firm not charge price above the market price?  Why does it not charge…

A: In a perfect competition market structure, there exist a large number of buyers and a large number…

Q: der perfect competition, firms profit in the long run will be abnormal profits.

A: A firm's profit is maximized profits in a perfectly competitive market Where marginal revenue (MR)…

Q: The diagram below, shows the cost structure for a firm in perfect competition. Assume that the…

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Q: Question 23 If a perfectly competitive firm incurs an economic loss, it should shut down…

A: In a perfectly-competitive market there are a large number of buyers selling homogeneous-products to…

Q: If it is possible for a perfectly competitive firm to do better financially by producing rather than…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: If a firm's total revenue is $100, it's total cost is $130, and its total fixed cost is $40. Should…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Analyze why perfectly competitive firms are not able to raise prices

A: Answer - Perfectly competitive Firm - Perfectly competitive firm are the firms who are price taker…

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

A:

Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $90…

A: Price is equal to marginal revenue (MR). Equilibrium output can be calculated as follows.…

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

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

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: A new korean restaurant opens in a city. People are initially cautious about eating new food items,…

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

Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate

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Q: Perfect Competition; How can the demand curve facing the firm be horizontal if the markket demand…

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Q: Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing…

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Q: Suppose that Maggie's Farm Organics, a perfectly competitive firm, is producing an Output equal to…

A: In perfect competition, eqm Q(quantity) is found by the intersection of MC(marginal cost) and…

Q: Question 13 Which of the following is true for a perfectly competitive firm that maximizes profit?…

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Q: In a perfectly competitive market, many firms sell an identical product. True False

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Q: Using an appropriate diagram, explain how a perfectly competition firm achieves profit- maximising…

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Q: (Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect…

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Q: In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a…

A: Perfectly competitive market is the market in which all firms produce homogeneous product and sell…

Q: It is difficult for firms to enter and exit a perfectly competitive market. True False

A: In perfect competition, there are many firms selling identical goods.

Q: condition for profit maximization for a pure

A:

Q: How much output should Sindbad produce to maximize his profit, if the market price is equal to $11?…

A: (1) The equilibrium condition for profit maximization of a perfectly (PC) competitive firms is…

Q: choose 1  if, for the last unit of a good produced by a perfectly competitive firm, MR>MC, then in…

A: MR is the additional revenue earned by last unit produced, and MC is the additional cost incurred by…

Q: In the long run, a perfectly competitive firm will earn a negative market return. a positive profit.…

A: A competitive market is characterized by a large number of buyers and sellers. The market price and…

Q: In the short run, in a perfect competition market structure, if P>ATC which of the following will…

A: In the short run, the interaction between demand and provide determines the “market-clearing" price…

Q: Which of the following is NOT true about a price taking firm?   a.If P* = SAC(q*), then profit =…

A: in a perfectly competitive market, there is a large number of firms producing similar and identical…

Q: Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making…

A: In a circumstance of amazing contest, regardless of whether an organization acquires benefits or…

Q: Shazam, a maker of magic wands, is selling in a purely competitive market. Its output is 600 wands,…

A: Given,   Output = 600 wands  Price = $8           Marginal cost (MC) = $8  Average total cost = $20…