Explain why a perfectly competitive firm won’t advertise.

Q: Bianca bakes delicious cookies. Her total fixed cost is $40 a day, and her average variable cost is…

A: Given,   Total fixed cost = $40  AVC = $1  Number of bag sold = 10  Price = $5  Cost of advertising…

Q: At what point does a firm in a perfectly competitive industry shut down? Explain with graph.

A: In a perfectly competitive industry, at the profit maximizing level of output, when the market price…

Q: In perfect competition there is a single seller True/False

A: # The main market forms are:- Perfectly competitive market Monopoly market Monopolistic market…

Q: discuss why a firm in perfect competition will not charge a price above or below the market price.

A: The perfect competition is a form of market where there are a large number of buyer and sellers,…

Q: was the west fraser timber company always been classified as perfectly competitive market in the…

A: When talking about the competitiveness of a firm, it can be said that it is determined by the market…

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

A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…

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: Refer to the graphs above of perfectly competitive firms. Which of the following statements is…

A: In graph 1, the firm is earning economic profit as price is above the ATC. The profit maximizing…

Q: When does z profit-maximizing competitive firm decide to shut down? When does it decide to exit the…

A: A profit maximizing form produces output at the point where the marginal cost is equal to marginal…

Q: Which of the following is not necessarily a characteristic of perfect competition? low pricesa large…

A: The implications of perfect competition are as follows: (i) The price is determined by the forces of…

Q: Using graph, explain when the firm maximizes its profit under perfect competition?

A: A perfect competition is a market where the firm has a control on quantity of goods to be produced…

Q: A large city has nearly 500 restaurants, with new ones entering regularly as the population grows.…

A: A perfectly competitive market alludes to a market structure in which there are countless firms 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: A perfectly competitive firm showing a profit

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

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: 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: Are Shoppe and Lazada considered as a perfect competition?  Why do you think that is?

A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…

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: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…

A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…

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

A: Perfectly competition is characterized by the presence of large number of buyers and sellers. the…

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

A: Four different types of market structures in an economy are perfect competition, monopoly, oligopoly…

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

A: The structure of the market where there exist many firms who sell homogenous goods to many buyers…

Q: A firm under perfect competition is

A: To find : What is firm under perfect competition.

Q: Are golf balls really differentiated products? Explain why or why they are not?

A: Golf balls are a common example of a monopolistic competitive market. It is known that any specific…

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: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.

A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…

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

A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…

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: The firm in pure competitive

A: A theoretical market structure that meets the following requirements is known as pure or perfect…

Q: How does a firm in perfect competition decide what price to charge? What quantity to produce?…

A: A perfect competition(PC) market is one with many consumers and sellers producing identical…

Q: Show what the side-by side graph looks like in perfect competition (Show the graph where the firm is…

A: Perfect competition is a market where there are a large number of buyers and sellers and each firm…

Q: Show what the side-by side graph looks like in perfect competition (Show the graph where the firm is…

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

Q: Explain how purely competitive firms can use the marginal-revenue–marginal-cost approach to maximize…

A: The use of marginal cost and marginal revenue is such that when prices are more than the minimum…

Q: Explain perfect competition in detailed explain profit maximization graphically

A: Perfect competition is a type of market which is characterized by a large number of buyers and…

Q: How can cigarettes in perfect competition be productive and allocative efficiency?

A: Productive efficiency means that the economy is producing without any wastage. The choice of…

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

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

Q: Complete the table above. What is the profit-maximizing output for this firm? a) 3 units b) 4 units…

A: Costs Revenues Quantity Produced Total Cost $ Marginal Cost Quantity Produced Price $ Total…

Q: Explain what so special about perfect competition

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

Q: Strictly speaking, pure competition is relatively rare. Then why study it?

A: Pure competition is a business condition where similar goods are sold by a wide number of individual…

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

A: The term "perfect competition" refers to a market structure that exists only in theory. There are no…

Q: Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as…

A: Given: Annual Revenue=$10,000 Earning as a farmer=$2000 per year Expenses for running…

Q: ow what the side-by side graph looks like in perfect competition (Show the graph ere the firm is in…

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

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.