In a perfectly competitive industry, long run equilibrium is characterized by OP< MC OP< ATC OP- MR OP> MC OP> ATC

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: Perfectly competitive firms maximize profits by choosing the profit-maximizing output level. They…

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

Q: Under the assumption of perfect competition in short run firms only earn abnormal profit.…

A: Perfect competition is the market structure with large number of buyers and sellers, selling…

Q: normal profit

A: There are different market structures like: ‘Perfect Competition’, ‘Monopoly’, ‘Monopolistic…

Q: Underer the assumption of perfect competition in short run firms only earn abnormal profit.…

A: The perfect competition is the market structure with large number of buyers and sellers, selling…

Q: Under perfect competition, firms profit in the long run will be:- (1) normal profit (2) abnormal…

A: # Perfect competition is a market structure where large number of buyers and sellers are there.  The…

Q: Why does a purely competitive firm not charge price above the market price?  Why does it not charge…

A: In a perfect competition market structure, there exist a large number of buyers and a large number…

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

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: For a perfectly competitive firm in short-run equilibrium, if the price is between AVC and ATC,…

A: A perfectly competitive firm is price taker as it is one of many firms producing identical goods.

Q: Explain why perfectly competitive firms are classified as a price taker

A: Answer - Price Taker Firm - The price taker firm are those firm who has not the ability to influence…

Q: Show and explain how the short run supply curve of the perfectly competitive firm is derived.

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

Q: Explain Long run equilibrium for a perfect competition

A: The long-run equilibrium point for a perfectly competitive market is said to have occurred where the…

Q: A perfectly competitive firm showing a profit

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

Q: When discussing pure competition, the term long run refers to a period of time long enough to allow:…

A: Option ‘c’ is the correct answer. Option ‘c’ - Because Option ‘a’ and ‘b’ both are correct. Hence,…

Q: In a perfectly competitive industry, what mechanism that adjusts price to minimum long-run average…

A: Firms are considered perfect competition when these conditions happen: (i) the industry consists of…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: A perfectly competitive firm will be operating at its shutdown point if it operates at the minimum…

A: In a competitive market there are large number of firms selling identical products thus acting as a…

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: Under the assumption of perfect competition in short run firms only earn abnormal profit.…

A: The statement is false.

Q: Perfectly competitive firms earn zero economic profit in the long run. True False

A: In perfectly competitive market, price is constant so it is equal to marginal revenue. Profit is…

Q: If price is consistently below average variable cost, then in the short run a perfectly competitive…

A: Average variable cost is given by  AVC =TVCq

Q: The graph shows the cost curves of an individual firm in a perfectly (or purely) competitive…

A:

Q: The shut-down point for a firm in a perfectly competitive industry is: P = MR P = ATC P = MC P =…

A: Average variable cost (AVC): - it is the average value of the cost incurred due to the employment of…

Q: A perfectly competitive firm will shutdown if its a. Loss is greater than the fixed cost b. Marginal…

A: A perfectly competitive firm will shutdown if its Average total cost exceeds its average variable…

Q: State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling…

A: The market structure can be divided into four based on the degree of competition and the type of…

Q: If firms in a perfectly competitive industry are earning a positive economic profit, in the long run…

A: Note: I am answering the first question only since you have crossed the other question and also we…

Q: (Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect…

A: Perfect competition:- According to theoretical framework, perfectly competitive exists when all…

Q: Is the following statement true? "A firm that operates in a perfectly competitive market will earn…

A: When there is a process innovation then it leads to a lower cost of production because innovation…

Q: When the perfectly competitive firm and industry are in long run equilibrium, then D - MP - SAC -LAC

A: To find : In perfect competition firma and industry are in long run equilibrium then what will be…

Q: If a perfectly competitive firm incurs an economic loss, it should shut down immediately. try to…

A: Perfect competition is a market structure wherein there are several firms in the market that tend to…

Q: Explain equilibrium of the firm under perfectly competitive market by choosing output level at which…

A: A competitive  firm produces output where P=MC=MR. At this output it earns profit or loss depends on…

Q: Comment on the Demand curve of a firm operating in perfectly competitive market

A: Perfectly competitive market has many buyers and sellers and the good being sold is 100% homogenous…

Q: A perfectly competitive firm is producing at the point where its marginal cost equals the price of…

A: We are going to use profit maximisation structure of a perfectly competitive firm

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +…

A: Equating market demand = market supply, 500 - 5P = 320 + P 6P = 180 P = 30 Q = 320 + 30 = 350…

Q: Suppose a perfectly competitive firm’s demand curve is below its average total cost curve. Explain…

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

Q: In the long-run, perfectly competitive firms produce at the point where P = ATC MR = MC P = MC All…

A: Perfectly competitive market refers to a market structure where there are many firms and buyers.…

Q: It is difficult for firms to enter and exit a perfectly competitive market. True False

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

Q: Refer to the above graph for a purely competitive firm in the short run. What minimum output level…

A: In order to answer this question, it is imperative to understand the concepts of breakeven and…

Q: A perfectly competitive firm is making a loss if

A: We have to find a perfectly competitive firm is making a loss.

Q: in a perfectly competitive industry, in the long run, firms earn a positive economic profit firms…

A: In financial matters, explicitly broad balance hypothesis, an ideal market, otherwise called an…

Q: In a perfectly competitive industry, what mechanism that adjusts price to minimum long-run average…

A: In the perfect competition, when there is the long run equilibrium in the market, firms generate…

Q: . A competitive firm’s short-run supply curve is its ________ cost curve above its ________ cost…

A: 4. A competitive firm’s short-run supply curve is its________ cost curve above its ________ cost…

Q: The long-run supply curve for a competitive, decreasing cost industry is a) upward sloping b)…

A: Decreasing cost industry is the industry in which per unit cost decrease when output increase

Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…

A: SRTC = 8 +0.5q2   and MC = q  TC = FC + VC Here from the total cost we can separate fixed cost and…

Q: The marginal revenue curve for a perfectly competitive firm is

A: Marginal revenue is the additional revenue earned through the sale of additional output. A graphical…

Q: Suppose that the perfectly competitive shrimp industry is in long-run equilibrium at a price of $3…

A: When the government report states that eating shrimp is bad for health, people will reduce their…