If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) > average fixed cost, the firm is: A. making a positive economic profit. B. making a zero economic profit. C. suffering an economic loss. D. None of these.

Q: A firm in a perfectly competitive market is producing new widgets for £3 and the market price is £4.…

A: The markets are the places where the interaction between the buyers, and sellers of goods, services,…

Q: 1. Competitive market, Practice Question Wheat farmer Joe has the cost function of C(q) = 160,000 +…

A: A cost function basically refers to a function of input prices and output amount whose value…

Q: The, competitive firm maximizes its profit by operating where:

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…

Q: What are the assumptions of perfect competition?  What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: A perfectly competitive firm does not increase its quantity of output without limit, even though it…

A: Answer: Introduction: A perfectly competitive firm is a price taker. In perfect competition, firms…

Q: Explanation with an example 1-Perfectly competitive market 2-Competitive market

A: Perfectly competitive does not exist in reality. It is theoretical possibility of a market with the…

Q: a. Draw the marginal cost and average total cost curves for a typical firm. Explain why the curves…

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

Q: In a perfectly competitive market, the market price is $23. At the current level of output, a firm…

A: 1) in perfect competitive market, there are many number of sellers and buyers which turns the market…

Q: Explain what is Perfect Competition with example and list 3 features of Perfect Competition market

A: There are different type of market structures like Perfect Competition, Monopoly , Monopolistic…

Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: A perfectly competitive firm, with MC=q operates in a market character,zed by the following market…

A: In economics, profit maximization is the short run or long run process by which a firm may determine…

Q: Which formula represents the profits for a firm? (check all that apply) (AC=average cost,…

A: Total cost is the overall cost incurred in the course of production of the good.

Q: A firm’s supply curve is key to economic reasoning. Derive the supply curve of an individual firm in…

A: The supply curve shows the association between the price of commodity and quantity of the commodity…

Q: What quantity should the firm produce to maximize profits? 400 units BO 800 units CO 600 units 200…

A: The Condition of Profit maximization in a monopoly Market is where the Marginal cost is equal to the…

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: Under perfect competition, which of the following are the same (equal) at all levels of output? a.…

A: Perfect Competition is the market structure where there are large number of buyers and sellers. They…

Q: A perfectly competitive firm, with MC=q operates in a market character,zed by the following market…

A: Demand: Q=20000-100P Supply: Q=100P

Q: A profit-maximizing business incurs an economic loss of $$30,000 per year. Its fixed cost is $45,000…

A: Short run business decision: It is given that, it is a profit-optimizing firm that incurs an…

Q: Question 9 Which of the following is(are) correct? A competitive firm will exit the market in the…

A: Economic profit includes a normal profit. Even when economic profits are zero, the firm is earning…

Q: jirm operates in a perfectly competitive market. If the market price (the price the firm must take)…

A: Perfect Competition is the one where there is infinite number of buyers and sellers and all the…

Q: 34. In the long run, a profit maximizing]firm will choose to exit a market when a. fixed costs…

A: If a market where there is freedom of entry and exit, the firm that suffer loss will exit from the…

Q: Question 5.5.   T-Shirt Enterprises is selling in a purely competitive market.  It is producing…

A: Pure competition or perfect competition refers to the market structure where the number of buyers…

Q: The marginal cost to produce one bottle of developer is $5. There is no fixed cost. Note that this…

A: Marginal cost is the cost incurred when one additional unit of output is generated.  The total cost…

Q: At profit-max quantity, the firm earns _________________economic profit on the last unit sold. Why?

A: The profit is the excess revenue made after deducting the total cost of production from the total…

Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: B. Under market condition, firms make normal profits in the long run.

A: To find : Under which market firm make profit in long run.

Q: Explain how the long run differs from the short run in pure competition.

A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…

Q: Outline the characteristics of a perfect competition market that makes it different from an…

A: "In an economy there are different market structures. Market structure depicts how various…

Q: 5. Competition Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns…

A: Given information Price =$25 each TC=$300 TFC=$60 Q=15

Q: Agriculture in India is mostly characterized by Perfectly Competitive Market! What are the…

A: Perfectly competitive market structure is the market structure in which there are large number of…

Q: Fill in the blank. "For a firm to be in equilibrium, Marginal Revenue (MR) and Marginal Cost (MC)…

A: The change in the total costs arising when a quantity is increased and the total cost of producing…

Q: In the long​ run, firms in a competitive market A. earn positive accounting​ profit, but zero…

A: A competitive market refers to the market in which there is a large number of firms that sell…

Q: 1. Competitive market, Practice Question Wheat farmer Joe has the cost function of C(q) = 160,000 +…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Write down the assumptions of perfect competition

A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…

Q: A requirement for a perfectly competitive market is that the sellers sell identical products…

A: The perfect competition is a market condition in which there are many producers and the production…

Q: The marginal cost to produce one bottle of developer is $5. There is no fixed cost. Note that this…

A: The cost of a firm are of two types- fixed cost and variable cost. The fixed cost refers to the cost…

Q: Reagan is a farmer and sells her wheat in a perfectly competitive market. Reagan produces 30,000…

A: A perfectly competitive firm in the short run will continue to produce even when the firm is making…

Q: If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC)…

A: Given the market price = $10 Average variable cost = $8 Average total cost = $15

Q: In a perfectly competitive market all producers sell

A: Firms under perfect competition cannot influence the price at which goods and services are sold in…

Q: In perfect competition market the goods which are sold are ___________ in nature

A: # In perfect competition market structure, sellers are large in numbers and they are selling similar…

Q: Rob Doe just started a ice cream business within a perfectly competitive market. The new business…

A: Marginal cost refers to the change in the total cost that arises when there is a change in the level…

Q: Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these…

A: The market demand curve slopes downward, whereas the demand curve of a perfectly competitive firm is…

Q: Uncle Brandon's farm has costs and revenue as seen in the graph. What is Uncle Brandon's…

A: A competitive firm maximises profit by producing that level of output at which marginal cost equals…

Q: Chetan's Fishing Rods is a small business that operates as a price-taker. The market price of a…

A: Given: Price of fishing rod=$30 C(q)=0.1q2+10q+10 Note: Due to multiple subparts being posted, the…

Q: 1. Competitive market, Practice Question Wheat farmer Joe has the cost function of C(q) = 160,000 +…

A: A cost function is a formula that may be used to provide an accurate forecast of the costs that will…

Q: You are the manager of a taco truck that is in a perfectly competitive industry comprised if…

A: A perfectly competitive market is characterized by the market being driven by the forces of demand…