Q: Which of the following is NOT an assumption of perfect competition? Select one: a. There are no…
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: The term that must take the prevailing market price for its product. refers to a firm operating in a…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: The perfectly competitive firm's marginal revenue curve is: exactly the same as the marginal cost…
A: Perfectly competitive firm that firm where large number of buyers and large numbers of sellers are…
Q: Perfect competition implies that Select one: a. there are many firms in the industry. b. all firms…
A: In economics, market structure refers to how different industries are classed and distinguished…
Q: A firm who accepts the price determined by the industry is a price taker firm True/ False
A: # There are markets such as perfect competitive market, where the firm's can't decide the price of…
Q: Perfect competition implies that all firms are price takers. All of the choices are correct. all…
A: The markets are the place where the buyers of different goods and services tend to meet, and…
Q: Which of the following is not an assumption of perfect competition? (a) There are no restrictions on…
A: Perfect competition is a market situation which rarely exist in practice. It is a market structure…
Q: All of the following helps explain why perfectly competitive firms are price takers except…
A: Perfectly competitive firm are the firm where there prevails the homogeneous product , having the…
Q: A firm in a purely competitive market structure calculates profit using the following equation:…
A: In a perfectly competitive market, a firm has to make various economic analysis related to price,…
Q: Perfect competition and monopoly are the two extremes of market structures. Discuss the difference…
A: The structure that depicts the way in which firms are being categorized and differentiated being…
Q: Firms in every market structure: Question 24 options: A) will attempt to maximize profits.…
A: Firms in every market structure will attempt and try maximizing their profit. Be it in monopoly…
Q: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…
A: Perfect competition is a market structure in which many sellers and buyers are existing in the…
Q: Which of the following characteristics would you not associate with perfect competition i.…
A: In Perfect competition there are many buyers and sellers of the commodity, each of which is too…
Q: Perfect competition is characterized by all of the following EXCEPT a. well-informed buyers and…
A: Perfect competition is a type of market structure.
Q: A competitive firm can increase profit by_____________________if marginal cost exceeds price.…
A: In perfectly competitive market, all firms produce homogeneous product, where no single firm can…
Q: MCQ: A perfectly competitive firm Can decide what price to charge for its product Has to sell its…
A: in perfect competitive market, 1) there are many number of sellers and buyers which turns the…
Q: Which of the following conditions is NOT present in perfect competition? All companies in the market…
A: In perfectly competitive market, sellers are price takers and NOT price setters i.e. no one can…
Q: What term refers to companies shaping their actions based on what their competitors do? allocative…
A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…
Q: In a market with perfect competition, Prices are set by businesses. businesses confronting an…
A: Technically, perfect competition creates a monopoly that enables a business to set any price because…
Q: Which of the following about perfect competition market structure is true? There are barriers to…
A: Marginal revenue is the additional revenue earned with an additional unit of output sold.
Q: Monopolostic competition is characterized by _____ economic profit in the long-run and perfect…
A: In a perfectly competitive market there are large number of firms selling identical products whereas…
Q: To maximise profits under any market structure, firms must apply two rules: the shutdown rule and…
A: Marginal cost (MC): - it is the additional cost incurred due to the production of additional units…
Q: а. the price to consumers will fall and the innovative firm will gain market power b. the price to…
A: The perfect competition is the type of market which has a large number of buyers and sellers of…
Q: In pure competition, price is determined where the industry: Multiple Choice total cost is greater…
A: Price: It means the amount of money that has to be paid to acquire a given product.
Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
A: Perfect competition is a type of market which has large number of sellers and buyers. All of them…
Q: In perfect competition, price is _____________. increasing. decreasing. none of…
A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.
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: The population for the local area increases A new firm enters the industry creating competition for…
A: The entry and exit of various form have impacts on the supply and demand for goods and services in…
Q: A feature that is not characteristic of a perfectly competitive market is firms as price takers.…
A: Characteristics of perfect competition are:
Q: A firm in perfect competition has no influence on market price True False
A: Pure or perfect competition is a market structure which has following features : All firms sell an…
Q: multiple choice firms in perfect competitions will leave the industry if they: 1- suffer short-run…
A: Perfect competition is a market structure in which all firm are free to enter or exit in the market…
Q: The marginal cost of a firm: a. crosses total cost at its minimum. b. crosses average variable cost…
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: In the perfect competition market structure if firm's are earning a loss which of the following will…
A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: If a profit-maximizing firm in a perfectly competitive market is currently producing the output…
A: Perfectly competitive market is a form of market in which there are large number of firms which are…
Q: In the perfect competition market structure price is equal to marginal revenue average variable cost
A: Perfect competition refers to a market structure, in which a large number of sellers sell…
Q: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: In Perfect Competition, Demand shifts produce greater price adjustments and smaller quantity…
A: In a perfectly competitive market, it can be seen that the demand and supply of any product have…
Q: Which of the following is not a characteristic of perfect competition? A. Many buyers and many…
A: In a perfectly competitive market, there are many small buyers and many small sellers, each are too…
Q: A firm operating in a competitive market will stay in business in the short run so long as A. Market…
A: Average total cost is the sum of average Fixed cost and average variable cost. Firms tend to earn…
Q: In perfect competition, the maximum benefit is achieved where the vertical difference between total…
A: Perfect competition is characterized by free entry and exists, no barriers, no transaction costs,…
Q: a source of market power that exists due to falling long run average total cost is a. Trade barriers…
A: Production cost is the monetary value incurred on factor of production to produce the output . And…
Q: What is the non price behavior of a perfect competition market structure. (Include examples)
A: Non-price competition in the perfect competition involves the product, unique selling point,…
Q: Match the words from the list below to complete the following statement A price taker firm will…
A: There are large number of firms in perfect competition selling identical goods with no barriers to…
Q: Please refer to the figure above. The competitive market player will produce ____ units of output.…
A: A perfectly competitive market is produce at a point where price is equal to MC From the figure,…
Q: What type of industry is described by the term "perfect competition"? an industry in which numerous…
A: In perfectly competitive market, price is constant so it is equal to marginal revenue and profit is…
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- 2017 International Practice Exam FRQ Joyce owns a gas station and monopolizes gas sales along a remote stretch of road. In February, Joyce stayed open even though she earned negative economic profits. a. Draw a correctly labeled graph for Joyce's gas station during February and show each of the following. i. The profit-maximizing output and price, labeled QJ and PJ ii. The average total cost curve, labeled ATC iii. Deadweight loss, completely shaded b. What must have been true for Joyce to continue operating during the month of February even though she earned negative economic profit? c. Assume that fixed costs for Joyce's gas station decrease. Would Joyce's profit-maximizing quantity increase, decrease, or stay the same in February? Explain. d. During the month of July, demand increases so that Joyce now earns a positive economic profit. However, she realizes her profits would have been higher if she had reduced the price of gasoline. i. At the quantity sold in July, was marginal…Employ the production cost theory to explain why we consider the Fruit & VegetableMarketin Al-Aweer to have a perfect competition structure.A monopoly might form if which of the following conditions of perfect competition were violated? Question 24Answer a. Many consumers b. Fully informed consumers c. Free entry and exit d. Firms produce identical products
- Market Structure: Perfect Competition and Monopoly Question 5 The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland.Calculate the profit or loss for Sarah Mat and, examine the key characteristics for perfect competition firm with reference to Sarah’s farmIn long run equilibrium Pls compare output, price, profit of a firm in perfect competition with that of a monopoly in long run Provide diagram and labellingExplain what is meant by a perfect competitor has no market power as applied to power system economics.
- PART C: MARKET ANALYSIS Pacesetter is a manufacturer of three-ring binders operating in a perfectly competitive industry. The Table below shows the firm's cost and revenue schedule Quantity (cases) Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost Total Revenue Profit (or Loss) 0 $0 $76 1 30 106 $40 2 50 3 134 4 140 5 160 6 114 7 150 8 190 9 316 PART C: MARKET ANALYSIS (i) Complete the Table above by filling in the blank cells. (ii) Based on the above Table, Pacesetter’s profit maximizing or loss minimizing level of output is __________; and the (profit is _________) or (loss is __________) (iii) Should the firm continue to…A new TV and film internet-only streaming service has just launched called FabFlix. Executives behind this launch are hoping to brand it as the number one choice for home streaming. Answer the following questions True or False and explain your answer with a single sentence. Compared to perfect competition, this industry would be characterized with: i. Higher prices ii. Higer output iii. Greater price elasticity iv. Higher concentration v. Greater product differentiationBiwei decides to set up a small business in NYC. The start-up cost is $1000 for a license and theestimated direct cost is $4 per output. - What would be the market competition effect of Sonia’s entry on Biwei’s business? Would itreduce Biwei’s cost? Would it reduce Biwei’s revenue? Would it reduce Biwei’s profit? Explain.
- Perfect competition is a theoretical market structure in which the followingcriteria are met: All firms sell an identical product. All firms are price takers.Market share has no influence on prices. Given the characteristics describedabovei. Describe the factors that drive profits to zero in perfectly competitivemarkets in the long run. Explain carefully the incentives that drive themarket to a long run equilibrium. ii. Why would a firm choose to operate at a loss in the short run? iii. When do firms decide to shut down production in the short run?Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (a) Find the equilibrium price, the equilibrium quantity, the output supplied by the rm, and the pro t of each rm. (b) Would you expect to see entry into or exit from the industry in the long run? Explain. What eect will entry or exit have on market equilibrium?Please answer all 1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred Group of answer choices a. Sunk costs b. Average costs c. Opportunity costs d. Marginal costs 2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month? Group of answer choices a. Potential buyers will lose buying power at the dealer b. It may sell the remaining cars at huge discounts to hit the quota c. It creates an incentive to sell cars from different manufacturers d. It would ruin the relationship between dealer and manufacturer…