Explain perfect competition in detailed explain profit maximization graphically

Q: What is the competitive structure of the firms listed below and why? A restaurant in a small,…

A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…

Q: a) Using the following graph state the price and quantity the firm will be at if the perfect…

A: Perfect Competition refers to a form of the market In which all firms sell a homogenous product. all…

Q: explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits…

A: The average total cost (ATC) refers to the cost of a single unit, includes the average variable cost…

Q: Under the assumption of perfect competition in short run firms only earn abnormal profit.…

A: Perfect competition is the market structure with large number of buyers and sellers, selling…

Q: Under the assumption of perfect competition in short run firms onlye earnabnormal profit.…

A: In perfect competition on short run, firms can earn : Abnormal profits Normal profits Losses So the…

Q: Given the operations of a peanut firm under perfect competition and assuming that the price of…

A: The price of the peanut butter = 35 The fixed cost = 50 Quantity = 5

Q: Discuss whether the profit-maximizing condition (i.e., output level where MR = MC) is true only for…

A: The profit maximization condition for all types of markets i.e. perfectly market, monopolistic…

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: (i) Complete the Table above by filling in the blank cells.  (ii) Based on the above Table,…

A: The term “profit” is defined as the excess of the total revenue over the total cost. Total revenue…

Q: State any two(2)ways that firms operating under perfect competition can use to increase their profit…

A: Perfect competition is a market system in which both producers and consumers have complete and…

Q: Explain Long run equilibrium for a perfect competition

A: The long-run equilibrium point for a perfectly competitive market is said to have occurred where 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: 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: ook at Table 8.13. What would happen to the firm’s profits if the market price increases to $6 per…

A: The marginal cost can be calculated by sing the formula given below:

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

A: In the long term, all production components are interchangeable. Free entrance and departure, as…

Q: Neatly draw the Average Cost Family curves below. Label everything. Assume a purely competitive firm…

A: In a competitive market there are large number of firms selling identical products.

Q: What is the competitive structure of the firms listed below and why? A retail store selling…

A: Answer: This is an example of monopolistically competitive market structure.

Q: Explain why a fast-food restaurant often displays characteristics of perfect competition.

A: The structure of a market where the consumption or production of goods and services do not tend to…

Q: Sony announces Smart Tennis Sensor Tennis racket maker Babolat introduced its smart racket Play Pure…

A: Monopolistic competition is where there are numerous sellers selling homogeneous but separated…

Q: 1.    Identify and explain the logic of the profit maximizing rule for pure competition. 2.…

A: competitive market is the form of market where competition is so high and there are large number of…

Q: How to calculate profit of loss in perfect competition in short run

A: In the perfect competition; The profit-maximizing condition; MR = MC

Q: Explain why a perfectly competitive firm won’t advertise.

A: In perfect competition, there are a large number of buyers and sellers where the latter do not have…

Q: Complete the following table by determining Raphael's accounting and economic profit of his piano…

A: Explicit Costs are the opportunity costs of production that require a monetary payment. Implicit…

Q: 2. Discuss the following statement: 'In the real world there is no industry which conforms precisely…

A: here we discuss the following statement as follow;

Q: Neatly draw the Average Cost Family curves below. Label everything. Assume a purely competitive firm…

A: Given below are the average cost curves of a perfectly competitive firm. It is given that the firm…

Q: On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that is…

A: ATC/AC is the average total curve. It is a U shaped curve. AVC is the average variable curve. It is…

Q: At the point of equilibrium of firm (under perfect competition)

A: To find: What happens at point of equilibrium of firm.

Q: Perfect Competition and the Supply Curve — End of Chapter Problem 3. Bob produces Blu-ray movies for…

A: Hello, Thanks for the question. Since there are multiple sub-parts posted here, only the first three…

Q: The table below shows cost and revenue information for Choco Lovers, a perfectly competitive firm…

A: MC(n)=(TC(n)-TC(p))(n-p) MC(n)=marginal cost of n th unitTC(n)=Total cost of n units 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: Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC…

A: A perfectly competitive market is one where there are large number of buyers and sellers. The good…

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: Is the Stackelberg leader guaranteed to make a higher profit than it would under standard Cournot…

A: None of the players in the Cournot Model understand interdependence. Therefore, continuing to…

Q: Using examples, explain the down-sloping and upsloping long run ATC. Why may pure competition earn…

A: In a competitive market there are large number of firms producing identical products thus acting as…

Q: Define Perfect Competition. Explain the key points of perfect competition.…

A: In microeconomics, markets are often classified as – Perfect or Pure competition, Monopolist market,…

Q: Explain equilibrium of a firm under perfect competition in long run  Explain its output, profit and…

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

Q: Which of the following is not an assumption of perfect competition? O No answer text provided.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: a) George's hair-cutting business is a profit-maximizing, perfecetly competitive firm. George…

A: Given : Price of haircut=$27 Total cost= $280 (inclusive of Fixed cost=$30) Number of customers per…

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: Distinguish among three types of imperfectly competitive industries and describe how imperfect…

A: The three types of imperfectly competitive industries are: Monopoly, Oligopoly and Monopolistically…

Q: Draw a model of a representative individual firm in the market for wheat, i.e. an Australian wheat…

A: Perfect competition market  A perfect competition market is a form of market where there is a large…

Q: 20 What is the key characteristic of perfect competition? A One firm sells a highly demanded…

A: Answer- "Thank you for submitting the question but we, are authorized to solve one question at a…

Q: . At the point of equilibrium of firm (under perfect competition)

A: To find : What happens at point of equilibrium of firm.

Q: Describe how profits and losses drive the long-run adjustment process of pure competition.

A: Pure competition is a market structure where there are large number of sellers dealing in a…

Q: List and briefly describe two benefits and three costs of an imperfectly competitive market…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: The following cost data is for a firm which is selling in a perfectly competitive market: Average…

A: A perfectly competitive firm produces output where P=MC, and there are 600 individual firms. And…

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: The graph below shows the costs structure of a firm operating under pure or perfect competition in…

A: Curve M is Total cost curve (TC) Curve N is Total variable cost curve (TVC)

Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.