In perfect competition, the maximum benefit is achieved where the vertical difference between total revenue and total cost is smallest. True or false
Q: Which of the following is NOT an assumption of perfect competition? Select one: a. There are no…
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: Under perfect competition a firm will increase output if: A) marginal cost equals marginal…
A: A perfectly competitive firm takes the price set by the market forces and sells each unit of its…
Q: In pure competition, the marginal revenue of a firm always equals a. total revenue b. average total…
A: In perfectly competitive market, a firm has perfectly elastic demand curve which means the firm can…
Q: In perfect competition there is a single seller True/False
A: # The main market forms are:- Perfectly competitive market Monopoly market Monopolistic market…
Q: True and False Also correct the false answers: 1. The firm operates in a long-run production period…
A: In a market, firm make decision regarding its cost, revenue, profit maximization and so on, and…
Q: Q4. For a firm in Perfect competition, the profit maximization output rule is either MR-MC
A: A profit-maximizing firm produces at the intersection point of MR and MC. i.e., MR = MC is the…
Q: Perfect competition implies that all firms are price takers. All of the choices are correct. all…
A: The markets are the place where the buyers of different goods and services tend to meet, and…
Q: Which of the following is not an assumption of perfect competition? (a) There are no restrictions on…
A: Perfect competition is a market situation which rarely exist in practice. It is a market structure…
Q: Which is a reason why there is no advertising by Individual firms under pure competition? Multiple…
A: Pure Competitive market is the market structure where are a large number of buyers nd large number…
Q: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…
A: Perfect competition is a market structure in which many sellers and buyers are existing in the…
Q: In perfect competition, a firm can maximize profit by producing at a quantity where price Is lower…
A: In perfect competition there are large number of firms selling identical goods.
Q: A purely competitive firm's marginal revenue curve is not the same as its demand curve. True False
A: Pure competition is the market structure in which there are large sellers of a homogeneous product…
Q: Which of the following characteristics would you not associate with perfect competition i.…
A: In Perfect competition there are many buyers and sellers of the commodity, each of which is too…
Q: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…
A: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…
Q: Perfect competition is characterized by all of the following EXCEPT a. well-informed buyers and…
A: Perfect competition is a type of market structure.
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 market with perfect competition, Prices are set by businesses. businesses confronting an…
A: Technically, perfect competition creates a monopoly that enables a business to set any price because…
Q: Market structure refers to the characteristics of an industry that define the likely behaviour and…
A: The market is completely competitive if there is no pure competition. The key aspect of a completely…
Q: Which of the following about perfect competition market structure is true? There are barriers to…
A: Marginal revenue is the additional revenue earned with an additional unit of output sold.
Q: Name atleast 2 business or service in the Philippines that is an example of perfect competition
A: Some of the features of Perfect Competition: 1. Firms are price takers 2. No individual firm can…
Q: In pure competition, the marginal revenue of a firm always equals: Multiple Choice average total…
A: Pure competition is a market structure in which there is a large number of buyers and sellers…
Q: In pure competition, price is determined where the industry: Multiple Choice total cost is greater…
A: Price: It means the amount of money that has to be paid to acquire a given product.
Q: Given that the cost function MC=x-2x^2-1 and the revenue function as MR=2x^2-3x-1 .Assuming pure…
A: The firms refer to their cost and the revenue statements for knowing the estimated future. The firms…
Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
A: Perfect competition is a type of market which has large number of sellers and buyers. All of them…
Q: Firms in a perfect competition market structure are price takers price makers very large in…
A: Pure or perfect competition could be a theoretical market structure during which the subsequent…
Q: Which of the characteristics of perfect competition assures that economic profit will be zero in the…
A: The market is the collection of buyers and sellers. It is the system in which the transaction of…
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A: None of the players in the Cournot Model understand interdependence. Therefore, continuing to…
Q: When price is less than marginal cost, a profit-maximizing producer in perfect competition will:
A: In the case of perfect competition, each firm takes the market price as given and hence produces an…
Q: Which of the following is a competitive benefit experienced by the first mover firm in an industry?…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Which of the following characteristics would you not associate with perfect competition i.…
A: Meaning of Perfect Competition: The term perfect competition refers to the situation under which…
Q: multiple choice firms in perfect competitions will leave the industry if they: 1- suffer short-run…
A: Perfect competition is a market structure in which all firm are free to enter or exit in the market…
Q: The marginal cost of a firm: a. crosses total cost at its minimum. b. crosses average variable cost…
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: In the perfect competition market structure price is equal to marginal revenue average variable cost
A: Perfect competition refers to a market structure, in which a large number of sellers sell…
Q: In Perfect Competition, Demand shifts produce greater price adjustments and smaller quantity…
A: In a perfectly competitive market, it can be seen that the demand and supply of any product have…
Q: Which of the following is not a characteristic of perfect competition? A. Many buyers and many…
A: In a perfectly competitive market, there are many small buyers and many small sellers, each are too…
Q: Firms in perfect competition earn a positive long run economic profit. True False
A: There is a clear distinction between economic profit and accounting profit. The accounting profit is…
Q: a source of market power that exists due to falling long run average total cost is a. Trade barriers…
A: Production cost is the monetary value incurred on factor of production to produce the output . And…
Q: In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that…
A: Pure competition is the market form in which there are large numbers of buyers and sellers that…
Q: In pure competition, product price is Greater than marginal revenue Equal to marginal revenue Equal…
A: In a pure competition market, a large number of buyers and sellers exist in the market. If you see…
Q: Marginal revenue and marginal cost are same. This means that the firm is at minimum level of profit.…
A: # we know that a firm maximizes profit at the level when the marginal profit are zero and this…
Q: What type of industry is described by the term "perfect competition"? an industry in which numerous…
A: In perfectly competitive market, price is constant so it is equal to marginal revenue and profit is…
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- In pure competition, product price is Greater than marginal revenue Equal to marginal revenue Equal to total revenue Greater than total revenueUnder perfect competition a firm will increase output if: A) marginal cost equals marginal revenue. B) marginal revenue equals average revenueC) marginal cost is less than price. D) price exceeds marginal revenue.In perfect competition, price is _____________. increasing. decreasing. none of these answers. equal to marginal revenue.
- Which of the following is a barrier to entry in a perfectly competitive industry? a)brand name recognition b)patents or copyrights c)economies of scale d) all of the above are correct e)none of the above is correctWhich of the following is not a characteristic of perfect competition? a. Absence of economies of scale for individual producers. b. Easy entry into the industry. c. A large number of firms advertising extensively in an attempt to increase market share. d. No product promotion strategy for individual firms e. Standardized productsWhich of the following about perfect competition market structure is true? There are barriers to entry and exist of firms in the industry. Firms sell differentiated products. There must be a lot of advertising and branding of product. Firms sell homogenous products.
- Perfect competition is characterized by all of the following EXCEPT a. well-informed buyers and sellers with respect to prices. b. considerable advertising by individual firms. c. no restrictions on entry into or exit from the industry. d. a large number of buyers and sellers.In the model of perfect competition, firms maximize profits by producing where: the difference between marginal revenue and marginal cost is maximized. the difference between price and marginal cost is maximized. the difference between price and marginal revenue is maximized. marginal revenue equals price which statement is true? price equals marginal cost.In perfect competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product. True or false
- Under Perfect Competition, firms only make normal profit in the long run. ElaborateWhy is marginal revenue for a firm in perfect competition equal to the market price?If price is less than average cost under pure competition, ____ firms will exit the industry, supply will ____, and price will be driven ____. A. more; decrease; down. B. more; increase; down. C. more; decrease; up. D. fewer; increase; up.