If a perfectly competitive industry is in a long-run equilibrium then: All individual firms in the industry are earning zero economic profit, market price = ATC O All individual firms in the industry are earning zero economic profit, P=MC O All individual firms in the industry are maximizing economic profit, P=MC O All individual firms in the industry have shut down if they are earning negative profit.

Q: QUESTION 10 For a perfectly competitive firm, if the MR curve is above the ATC at the optimal…

A: Profit:MR>ATCLoss:MR<ATCBreak-even point:MR=ATC

Q: Suppose you are the economic advisor of Jackie Brown Company, a perfectly competitive company that…

A: Given,   Output = 50 units per day  Price = $20 per unit  Variable costs (VC) = $24,000 per month

Q: A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q,…

A: In perfect competition there are large number of firms selling identical goods.

Q: If a competitive firm maximizes short-run profits by producing some quantity of output, which of the…

A: Profits are the end result for which business organizations work. Profit is the main and most…

Q: If a competitive firm finds that it maximizes short-run profits by shutting down, which of the…

A: Shut down point: The shutdown point exits at that point where the price is equal to the minimum…

Q: If it is possible for a perfectly competitive firm to do better financially by producing rather than…

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

Q: Suppose that a perfectly competitive industry consists of 240 firms and fixed cost of an individual…

A: The competitive market consists of many buyers and sellers. All sellers have identical product.…

Q: You are the manager and selling your product in a perfectly competitive firm market. Your firm and…

A: Here, it is given that a firm operates its business in the perfectly competitive market with market…

Q: Suppose that price is below the minimum average total cost (ATC) but above the minimum average…

A: In perfect competition, every seller in the market would be a price taker. A perfectly competitive…

Q: In the above figure, the left hand side graph represents a perfectly competitive industry and the…

A: Perfect competition is an ideal type of market structure where all producers and consumers have full…

Q: which shows the graph of a perfectly competitive firm in the short run. a) If the firm's demand…

A: Perfect competition is a business system where a homogeneous commodity is sold by several companies.…

Q: Which of the following is generally true in a perfectly competitive industry? * A firm's supply…

A: Firms aim to for profit maximization thus they tend to produce a profit maximizing quantity.

Q: The market for drones is perfectly competitive. Assume for simplicity that fractions of everything,…

A: TC=712+q2Now,AC=TCqAC=712q+q

Q: TRUE OR FALSE? A decreasing cost industry has a long run supply curve that is upward sloping.

A: In a market, decreasing cost industry refers to the one that has the ability o reduce its average…

Q: A perfectly competitive firm will maximize its profit when marginal revenue is greater than marginal…

A: Marginal Revenue is the cash a firm makes for each extra deal. As such, it decides how much a firm…

Q: Assume that the cost curves in the attached figure apply to all firms in an industry. Then, if the…

A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…

Q: Canadian red wheat is a normal good, in a perfectly competitive market that is in long-run…

A: Perfectly competitive market is characterized by a large number of buyers and sellers who deals in…

Q: The key characteristic which prevents firms in a perfectly competitive industry from earning…

A: In perfect competition there are large number of buyers and sellers selling homogeneous goods which…

Q: Assuming that the CD manufacturing business is a perfectly competitive industry, explain why his…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

Q: You are the manager and selling your product in a perfectly competitive firm market. Your firm and…

A: Given C(Q) = 50 + 10Q + 2 Q2, MC = Change in Total Cost/ Change in Output      = 50 + 10Q + 2 Q2 / Q…

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

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

Q: A perfectly competitive firm has a long-run cost function, C(q) = 8q2 + 72. In the long run, this…

A: In case of Perfect Competition, there are large number of buyers and sellers. All firms sell…

Q: The table below gives the short run total cost function for a typical firm in a perfectly…

A: Market power is a measure of the ability of a company to successfully influence the pricing of its…

Q: In a perfectly competitive market with a constant cost industry, there are currently 100 identical…

A: A perfectly competitive firm produces at P = MC in short run. TC = Q2 + 4Q + 36 Differentiate TC…

Q: Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost…

A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…

Q: Which of the following is NOT necessarily true about the long-run equilibrium of a perfectly…

A: A perfectly competitive firm is a price taker and choses the level of output where marginal cost…

Q: Consider a firm that operates in a market that competes aggressively in prices. Due to the high…

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

Q: We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the…

A: In a perfect competitive market, there are large number buyers and sellers selling identical goods…

Q: a perfect competitive firms has the following total cost function: total output : 0 1 2 3 4 5 6 7…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: If a perfectly competitive firm’s supply curve is given by Q = -18 + P, which of the following is…

A: The supply curve, Q = -18 + P

Q: Consider a market structure of perfect competition where firms have a U-shaped average cost curve.…

A:

Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

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

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: Consider an industry in a competitive market that consists of 100 firms with identical short run…

A: 100 firms C (q) = 50 + 0.5q2  MC = dC/dq MC =q

Q: For a perfectly competitive firm, suppose that all fixed cost is sunk and total fixed cost is 100…

A: Marginal cost gives firm's short run supply in perfect competition. Firms maximize profit by selling…

Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…

A: Answer: A perfectly competitive firm maximizes its profit where the average total cost (ATC) is…

Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…

A: In perfectly competitive market, there are large number of firms selling identical goods.

Q: If a perfectly competitive firm decides to operate at a loss in the short run, it will minimize that…

A: There could be a case when a perfectly competitive market face a loss in the short-run, but it still…

Q: firm's profit function is z(q) = R(q) – C(q) = 140q - (410 + 20q + 10q). What is the positive output…

A: Profit is the difference between total revenue and total cost. Total cost is the sum of Fixed and…

Q: There are 300 identical firms in a perfectly competitive market, the price of the output iS p, the…

A: TC(total cost) has 2 parts- TVC(variable cost) and TFC(fixed cost). Variable cost varies with the…

Q: (Question 4 of 4): Consider that a perfectly competitive constant long-run cost industry with…

A: The market demand is given as well as the Total cost function of the identical firms is given. The…

Q: In a perfectly competitive and constant cost industry, all firms are identical. If the market demand…

A: Given Information Market demand : QD = 600−PFirm cost: TC = q3 − 20q2 + 120q

Q: Consider the perfectly competitive market for tofu. Tofu production requires special inspections…

A: Introduction: Pure or perfect competition is a theoretical market structure in which the following…

Q: Suppose you are the economic advisor of Jackie Brown Company, a perfectly competitive company that…

A: Given; Quantity sold in one day= 50units Quantity sold in one month= 50×30…

Q: Suppose that many small firms operating in the perfectly competitive market set-up. All firms are…

A: c (q)= 40+8q+(q^2/10) P= A - (Q/50) 78 firms in the market,  firm’s maximum profit is $22.5

Q: When the perfectly competitive firm produces the quantity of output at which marginal revenue equals…

A: A perfectly competitive firm maximizes profit by producing at the level where marginal revenue…

Q: There are 300 identical firms in a perfectly competitive market, the price of the output iS p, the…

A: Given  Total cost function in short run: C(q)=q3-2q2+2q+10             .........(1)