Explain the three possible profit maximizing positions of perfectly competitive firms in the short-run. with diagrams

Q: 1. Draw a graph representing a perfectly competitive firm earning an economic profit. (Make sure to…

A: When all companies sell identical products, market share has no bearing on price, companies can…

Q: A firm operates in a perfectly competitive market and is producing at the profit-maximizing output.…

A: In a perfectly competitive market, there are many firms producing identical goods. Firms do not have…

Q: 1.  Explain how the long run differs from the short run in pure competition. 2.  The basic model of…

A: 1. In the short run, when plants and gear are fixed, the organizations in an absolutely competitive…

Q: A perfectly competitive firm's demand curve is perfectly elastic at the market-determined price.…

A: Given  The statement is A perfectly competitive firm's demand curve is perfectly elastic at the…

Q: 14 If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?…

A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…

Q: 46. The firms in a perfectly competitive are making an economic profit when new firms enter. the…

A: perfectly competition market is the market where large number of buyer and seller sell homogenous…

Q: Why is the demand curve facing a firm in an imperfectly competitive industry downward sloping? What…

A: Any economic market that does not meet the rigorous assumptions of a hypothetical perfectly…

Q: 6. The following figure shows long-run average and marginal cost curves for a competitive firm. The…

A: "The figure given in the question relates to the firm in a perfectly competitive market structure.…

Q: What is the difference between the demand curve observed by a perfectly competitive firm compared to…

A: A monopolistic market and a completely competitive market differ in various ways, including market…

Q: 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the…

A: In perfect competition there are large no of buyers and sellers and all the buyers are price taker.…

Q: 1. Graphically depict the long-run graph for a purely competitive structure. Include Graphs and a…

A: Perfect competition is that  type of market structure in which there many numbers of sellers and…

Q: )The graph below shows the marginal revenue, marginal cost, and average total cost at different…

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

Q: What two rules does a perfectly competitive firm apply to determine its profit maximizing quantity…

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

Q: 6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to…

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

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: 1. A) What are the underlying assumptions associated with Perfect Competition? B) Explain why firms…

A: A. The assumptions based on the perfect competition are as follows: There are a large number of…

Q: 29. In the long run, a profit maximizing firm will choose to exit a market when a. fixei costs…

A: In the short-run, a firm exits a market if it is not able to cover its variable costs, i.e., it…

Q: 4 In the market for running shoes, all the firms face a similar demand curve and have similar cost…

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

Q: a. zero b. No answer text provided. c. negative d. positive

A: Eqm (Equilibrium) is the term in which mkt SS(supply) &DD( demand) intersects each other &…

Q: 10. The diagram shows the price, marginal cost and average cost curves facing a perfectly…

A: The key characteristic of a perfect competition firm where the P=Demand = Marginal revenue or we can…

Q: 1. Using the characteristics of perfect competition, explain why are garlic producers price-takers.…

A: Firms are said to be in perfect competition when the subsequent conditions occur: (1) many firms…

Q: 10 In the long run a perfectly competitive industry will have all firms making profits O all firms…

A: A perfectly competitive industry is one in which a larger number of sellers are allowed to offer…

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

A: A perfectly competitive market structure is one in which there are a large number of buyers and…

Q: flat demand curves; easy exit; easy entry

A: Answer Option (a). Flat demand curves easy exit, easy entry. Explanation- In perfect competition,…

Q: 6. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…

A: Quantity delivered refers to the number of things or services that a supplier will make and sell at…

Q: 1 Evaluate the demand curve of firms that operate in Perfect competition

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

Q: 8. (The Short-Run Firm Supply Curve) Each of the following situations could exist for a perfectly…

A: A firm in a perfectly competitive market is one of the many small firms producing and supplying…

Q: 2. Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price…

A: In an economy, oil is considered as a cruical resource because it can be used in various areas and…

Q: (a) Why the competitive firm faces a relatively horizontal demand curve.  (b) The profit…

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

Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…

A: Perfect competition this is a type of a market structure.

Q: 2) Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or…

A: Long run: - it is the time period in which all factors of production become variable in other words…

Q: 10. In perfect competitive market, there is a firm with a U-shape marginal cost curve. The supply…

A: The supply curve for perfectly competitive firm starts with minimum point of Average variable…

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…

A: Since you posted multiple questions, we will provide you the answer of first question. If you want…

Q: 19. The figure shows the short run conditions of a firm in a perfectly competitive market. In the…

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

Q: QUESTION 7 (10 points): • Explain the effect of an increase in demand in a perfectly competitive…

A: Short Run - Increase in Demand When market demand increases, the market price of the good rises, and…

Q: 8. Which of the following markets comes close to satisfying the assumptions of a perfectly…

A: # A perfectly competetive market structure is characterized by large number of buyers and sellers.…

Q: 3. A profit-maximizing firm is perfectly competitive and is at long-run equilibrium. The output of…

A: A perfectly competitive market refers to one where a company may readily enter and offer a product…

Q: A. If a firm operating in a perfectly competitive market doubles the amount it sells, what happens…

A: a) Firms are price taker in perfectly competitive market. So, when the firm doubles the amount it…

Q: 2 b. Explain the situation when the firm under perfect competition continues production in the short…

A: Under the perfect competition, firms are price takers. The price of goods and services determined by…

Q: Given perfect competition show on a diagram that profit maximisation implies marginal revenue equals…

A: So as to understand the profit maximization under perfect competition relating to MC & MR along…

Q: 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry…

A: Hi there! Thank you for the question. Since we only answer one question, we will answer the first…

Q: 1. Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of…

A: The typical cost functions are given in the next step.

Q: 33) At the profit-maximizing level of output for a perfectly competitive firm A) price equals…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…