Family Mart like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this?

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: It refers to a market condition in which there are a large number of buyers and sellers that are…

Q: Can excess profit be earned in this industry in the long run?

A: Excess profit means an amount of profit which is higher than the total cost incurred in production.

Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…

A: Economic profit is defined as difference between revenue that is received from the sale of a good or…

Q: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. How can you…

A: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. The…

Q: In doorknob manufacturing industry, you observed that the firms are making losses. In the long run…

A: In doorknob industry, when the firms are making losses, some firms will exit the market. In the…

Q: Based on the given graph: a. If this firm profit-maximizes, how much output will it produce and…

A: Given;

Q: Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?

A: Given that the market structure is monopolistic competition, the profit maximizing condition is  MC=…

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: Do entry and exit occur in the short run, the long run, both, or neither?

A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…

Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…

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

Q: How would a pizzeria in a densely populated area with 20 to 50 competitors thrive in a pure short…

A: The pizzeria could thrive in short run than long run, because of several factors. In short run, it…

Q: What type of product by individual firms (none, total, some etc) are in a perfect competition and…

A: Perfect competition is a market structure in which all producers and consumers have complete and…

Q: When are you are you expecting companies to produce in the short run? A. costs equal equal revenue…

A: A firm tends to earn positive profits when its  earned revenues can cover its total costs.

Q: Soft drink industry has been historically profitable why? compare the economies of the concentrate…

A: Soft drink Industries are profitable because:- These industries needed lower investments. This can…

Q: Why is it important for managers to understand the mechanics of supply and demand both in the short…

A: The terms "long run" and "short run" do not relate to a specific time period like three months or…

Q: What are three short-run outcomes in the perfect competition?

A: In the short-run, the perfect competitive firms, can have three outcomes.

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: Why perfect competition considered as a price taker?

A: According to economic theory, perfect competition exists when all companies sell the same things,…

Q: If the firms in a competitive industry incur an economic loss, what happens to supply, price,…

A: If firms earn economic loss, some of them will exit the market. This will decrease market supply,…

Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?

A: A monopoly occurs when a single person or corporation serves as the exclusive supply of a certain…

Q: why do economists and policy makers use perfect competition as a benchmark to analyze market…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: 1) Use the graph to answer the question below. The quantity is measured in thousands of units.…

A: As per the guidelines answer is given to the first question. (1) As per the diagram given in…

Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…

A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…

Q: How we can understand the Long-run Normal price in increasing cost industry, and the Long-run Normal…

A: When a business expands, its average expenses rise. This is known as an increasing-cost industry…

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: you read in a business magazine that the computer firms are reaping high profits. with the theory of…

A: In a perfectly competitive market, the new firms and easily join or leave the market. Basically, the…

Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: What does it mean to be operating a firm in the "long run?"

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

Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…

A: Imperfect competition is that market structure which does not include  Perfect competition. It…

Q: What does that mean in terms of long-run profit?

A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Q: Explain market conditions in the long run

A: In the long run, perfectly competitive marketplaces look different than they do in the short run.…

Q: In order to maximize the profit, what decision do you think is the most important one?

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which 'Economies of Scale' creates imperfect competition and Why?

A: Economies of scale refers to a situation where there is fall in per unit output of average cost with…

Q: explains why in perfect competition, there are no economic profits or losses in the long run?

A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…

Q: Explain why in the long run perfect competitive firms can only break even.

A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…

Q: Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2…

A: Answer: (b). From part (a) it is known that the profit-maximizing quantity of corn is 16 dozen ears…

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

A: Since the market is perfectly competitive, the price of the product is set by the industry. Under…

Q: Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing…

A: Here, Lisette being the owner of the bakery shop experiences constant returns to scale.