In a perfectly competitive market, how do we go from a short run equilibrium to a long run equilibrium?

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition exist when there are large number of buyers and sellers in the market and the…

Q: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A: A perfectly competitive firm is price taker. The market price it faces is constant. This implies…

Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

Q: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…

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: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition is a market structure where the price of the commodity sold is same and is…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: • Please explain the difference between the short run and long run equilibrium under a per- fectly…

A: Perfect competition is the market structure which is characterized by a large number of firms with…

Q: Why are perfectly competitive markets considered economically efficient?

A: There are several forms of the market that exists in the real world out of which perfect competition…

Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…

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

Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: What are the characteristics of a perfectively competitive market?

A: There are different market structures with different characteristics.

Q: Why do you think a firm in a perfectly competitive industry does not have market power?

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A:

Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?

A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…

Q: If new technology in a perfectly competitive market brings about a substantial reduction in costs of…

A: The term "perfect competition" refers to a fictional market structure in which all suppliers are…

Q: Under what conditions should a competitive firm shut down in the short run?

A: In the short term, a corporation that operates at a loss (where the income is less than the overall…

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

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

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: Is the perfectly competitive market model realistic? If not, why do we want to study the perfectly…

A: Perfect competition is a market model that assumes a large number of firms produce identical goods…

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

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: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

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

Q: How equilibrium price is determined under perfect competition?

A: Under perfect competition, both producers and consumers are price takers.

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: Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to…

A: When perfectly competitive markets combine with utility-maximizing buyers, the resulting quantity of…

Q: Which of the following is most likely to operate under a perfectly competitive market? 1) A…

A: Perfect competition is a market condition there is a large number of buyers and sellers selling an…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition is many sellers dealing in commodity which is same in quality and price at which…

Q: Can you think of a product that meets at least most of the criteria required for a perfectly…

A: Perfectly competitive market refers to the market which has been characterized by the presence of…

Q: Explain why in the long run perfect competitive firms can only break even.

A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…

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

A: Since the market is perfectly competitive, the price of the product is set by the industry. Under…

Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…

A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…

Q: What is the short run Supply Curve for a competitive firm?

A: In perfect competition, the short-run supply curve is the marginal cost curve (MC) at and below the…

Q: The market supply curve in a perfectly competitive market is typically?

A: A firm in a perfectly competitive market is a price taker. It has a supply curve which is the rising…

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: In the long run, a perfectly competitive firm can

A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…

Q: In the short-run, competitive firms want to shut down if     P = MC     P = AVC     P > AVC…

A: A perfectly completive market is where several sellers and buyers are involved in the exchange of an…