How do firms in a competitive market work?

Q: What are the two essential characteristics of a competitive market?

A: ANS A competitive market is a market in which there exist many sellers selling homogeneous goods to…

Q: A competitive market system is efficient. Discuss and explain this statement in detail. Your answer…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: What is the goal of a firm?

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Suppose the market for bottled water and the market for soft drinks both have large numbers of…

A: ANS For a market to be competitive the producers must sell homogeneous goods such that the consumers…

Q: Which are the most likely to be produced in a perfectly competitive industry?

A: A completely competitive market is one in which all businesses sell the same product and where…

Q: use relevant diagrams as well as microeconomic theory, discuss why competitive firms stay in…

A: In the long run, a firm in a perfectly competitive market will only make a normal profit(zero…

Q: Economics Firms in competitive markets can only earn economic profits in the long run, once the…

A: Competitive balance is accomplished while profit-maximizing makers and utility-maximizing consumers…

Q: When will a firm enter a competitive market?

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: Why can't firms enter the market in the short-run?

A: There are various types of market structures which have different characteristics of the number of…

Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…

A: In a market with perfect competition, every manufacturer offers the same products or services. There…

Q: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: William Shepherd’s research of U.S. industries showed a clear trend in the competitiveness of the…

A: The competition is the increased presence of the competing firms in the market where the buyers can…

Q: Using graph, explain when the firm in a competitive market is in equilibrium?

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: What happens when a perfectly competitive market is in equilibrium?

A: A perfectly competitive market is a market structure in which there are many buyers and sellers. The…

Q: In the short run, a competitive firms supply curve is

A: A perfectly competitive firm is price taker in nature, and hence faced a horizontal demand curve.

Q: When will a firm neither enter or exit a competitive market?

A: In competitive market firms are free to enter and exit.

Q: Who said “The customer experience is the next competitive battleground” ?

A: Customer experience refers to the perception of a business by the customers. It is formed when a…

Q: Explain how economics make profit or loss when firms are perfectly competitive.

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

Q: What is marginal revenue and marginal cost?

A: Marginal cost and marginal revenues are main concepts that determine th optimal output of the firm.

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: There is a trade-off between equity and efficiency in a perfectly competitive market system. Analyse…

A: Consider the following diagram :

Q: What kind of business is a water refilling station? What problems are solved with the help of a…

A: 1) A water refilling station is a business where the supplier provides safe, and drinkable water to…

Q: List the requirements for a perfectly competitive goods market.

A: For a particular production process, there has to be some factors of production available. For…

Q: In perfect competition market, Firms have perfect knowledge of market. What does that mean?

A: A perfect competitive market structure has many buyers and sellers. All the firms are the price…

Q: How many firms are there in a perfectly competitive market?

A: Perfect competition is a form of market structure.

Q: Why must the marginal revenue be equal to the marginal cost for a producer? Explain.

A: Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit…

Q: When is it the right time when a firm will enter a competitive market?

A: A competitive market is considered as one where firms have no opportunity to deviate from market…

Q: What are the requirements for a perfect competition market?

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: Q1. ĮThe graphs of the perfectly competitive market for eggs and an egg producer are the given…

A: Perfectly competitive market is the market structure where there are large number of buyers and…

Q: Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for weddings.…

A: Given:  There are 4 potential suppliers of catering services.  Name Cost Jacques $50,000…

Q: What is the firms profit or loss?

A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…

Q: Do you think firms really try to maximize profits? Do firms (especially small ones) know what prices…

A: Economist generally assume that firms act as profit maximisers. Economists don’t think there’s…

Q: nswer the following questions. 1. In the year 2000, the town of Cuenca in Batangas did not have…

A: There are different categories of market structure. Perfect competition, monopoly, monopolistic…

Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?

A: Answer - In the long run where the every input can vary and as in the long run where firms can make…

Q: why competitive firms stay in business if they make zero profit?

A: First it should be clear that zero economic profit means that total Total Revenue is equal to the…

Q: Only one firm able to produce profitably in a market given demand and costs describes a ____?

A: A monopoly market's features enable the sole seller both the market operator and the value creator.

Q: 2. On the other hand, the General Motors went on a different direction. General Motors was founded…

A: Perfectly competitive market has large number of buyers and sellers. There is free entry and exit…

Q: Can you name five examples of perfectly competitive markets? Why or why not?

A: Perfect competitive market is a market with large number of buyers and sellers exists and firms are…

Q: What price does a firm charge for the good it produces?

A: Economics is a branch of social science that deals with the production, consumption, and…

Q: What is Market competition?

A: The market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: The market for which product best fits the definitionof a perfectly competitive market?a. eggsb. tap…

A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers…

Q: perfectly competitive market?

A: Perfectly competitive market is the ideal market where buyers and sellers all have perfect complete…

Q: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…