In a perfectly competitive market ,why does the firm always break even in the long run ? Illustrate your answer with diagram

Q: Perfectly competitive firm that makes economic loses in the short run must cease its operations. do…

A: Perfectly competitive firm is a price taker because there are many sellers in the market selling…

Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…

A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…

Q: rm

A: The short run supply curve In a perfectly competitive market is the curve of marginal cost being at…

Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…

A: Perfect competition: Under the perfect competition market, the price is decided by the demand and…

Q: At what point does a firm in a perfectly competitive industry shut down? Explain with graph.

A: In a perfectly competitive industry, at the profit maximizing level of output, when the market price…

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

A: A market will be perfectly competitive when a larger group of suppliers serve identical or…

Q: graph shows the short run cot curve of a firm in a purely competitive market. Which of the following…

A: The profit maximizing output for the firm occurs where the (the upward sloping part of the) marginal…

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: If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you…

A: Any manager worth his salt would aspire to maximize profits and minimize losses.  When the total…

Q: Do you agree with the following statement and explain why! "A firm that operates in a perfectly…

A: Perfectly competitive market is a market where there are many buyers and sellers in the market…

Q: What is the shape of the demand curve of a firm under perfect competition

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

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: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the…

A: Here, the given graph shows the marginal cost and average cost of producing doughnuts by the firm in…

Q: What is the shape of the demand curve faced by a firm under perfect competition?

A: Perfect competition, according to economic theory, occurs when all companies sell identical items,…

Q: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…

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

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: 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: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.

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

Q: In the short run, a perfectly competitive firm should continue to produce as long as it can cover…

A: In the short run, a perfectly competitive firm should continue production till price per unit is…

Q: Question 13 Which of the following is true for a perfectly competitive firm that maximizes profit?…

A: A perfectly competitive firm is the one that competes with many sellers of the homogenous good due…

Q: why does a purely competitive firm not charge a price below the market price?

A: A purely competitive firm is in the market with the following assumptions: 1. Identetical products…

Q: Goldbar is an energy bar firm selling in a perfectly competitive market but is considering the…

A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…

Q: At what point would a competitive firm shut down in the short run

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

Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…

A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…

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: 08. Which of the following holds for a perfectly competitive firm that is in long-run competitive…

A: 08. Price is equal to marginal cost is long run competitive equilibrium condition of a perfectly…

Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…

A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…

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: Below is a two-diagram model representing a perfectly competitive market and a representative firm…

A: All firms get only normal profit over the long run. A firm can get positive or abnormal profit over…

Q: 5. Short-run equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 120…

A: We are going to find the Supply schedule for 120 firms with the help of Supply schedule for a single…

Q: Graphically show how the profit-maximizing level of output is determined for the perfectly…

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

Q: Identify a perfectly competitive firm

A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…

Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…

A: Acceptable loss means the loss which has to be accepted.This happens generally in perfectly…

Q: How much output should Sindbad produce to maximize his profit, if the market price is equal to $11?…

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

Q: Illustrate and fully discuss the derivation of the demand curve for a perfectly competitive firm

A: Perfect Competition Conditions An economic examination of a company's production decisions considers…

Q: xplanations.

A: In the long run,the profits and losses under perfectly competitive industry tend to get eliminated…

Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…

A: A competitive firm faces a parallel price line because in a competitive market, the firm is a price…

Q: Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be…

A: In a perfectly competitive market, there are large number of buyers and sellers in the market…

Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC 10…

A: Profit is maximized at a point where MR is equal to MC.

Q: Which of the following is true in the long run equilibrium of a perfectly competitive market? O…

A: In the long run equilibrium in perfectly competitive market, firms earn an economic profit of zero.

Q: Question When a perfectly competitive firm is at the profit maximizing output level what will be the…

A: Perfectly competitive market: In a perfectly competitive market structure, there exists a large…

Q: When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market…

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

Q: In the figure provided below, which perfectly competitive firm (a, b or c) a. earns economics…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.