Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average total cost is $7.50, and the marginal cost is $10.00.                                                                                                                      What would you expect the firm to do in the short run? Why?   What would you expect the market to do in the long run? Why?

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A: Calculating the market supply; P=MCP=2+2qEach firm supply: q=P-22Market supply: Q=17q=17P-22

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Q: perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates…

A: Given, Price = $110 TC = 70 + 14Q + 2Q2 MC = 14 + 4Q

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A: Ans) The correct option is - a) price will decrease until economic profit is zero.

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A: In perfect competition there are many firms producing identical goods.

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Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…

A: here we find the correct answer as follow;

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A: Perfect competition refers to the market structure that has many buyers and sellers where everyone…

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A: If firms in a perfectly competitive industry are earning losses, we would expect that in the long…

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A: As per the question the perfectly competitive market usually refers to that market where all the…

Q: The figure below depicts the short-run market equilibrlum In a perfectly competitive market and the…

A: Perfect competition market is such market where there are very large number of buyers and sellers…

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A: The following problem has been solved as follows:

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

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Q: Determine a perfectly competitive firm’s profit-maximizing output level and profit in the short run.

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Q: Which of the following are characteristics of a perfectly competitive market? Check all that apply.…

A: Perfectly competitive market  There are many buyer and seller and free entry and exit of entry

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A: The perfectly competitive market is a market type which is characterized by a large number of buyers…

Q: Firms in the market for dog food are selling in a purely competitive market. A firm producing dog…

A: A competitive market is one in which numerous producers compete for the goods and services that we,…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?