Perfect Competition; How can the demand curve facing the firm be horizontal if the markket demand curve is downward- sloping?

Q: Demand for Fries QD(P) = 10,000 - 10P N number of firms follow: TC(Q) = 20,000 +0.5Q^2   What…

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

Q: Which of the following distinguishes the short run from the long run in pure competition?

A: Pure Competition or Perfect Competition is defined as a theoretical market structure where all the…

Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

Q: What is the Imperfect competition that refers to any form of market structure other than perfect…

A: Perfect competition refers to a market in which there is many seller and buyer dealing in a…

Q: explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits…

A: The average total cost (ATC) refers to the cost of a single unit, includes the average variable cost…

Q: The graph shows the demand curve (D), average total cost curve (ATC), average variable cost curve…

A: In perfectly competitive market, the firm produces where D=MC. Here, that is denoted by point A in…

Q: Which of the following is not an assumption of perfect competition? O No answer text provided. O…

A: A perfectly competitive market is a market with many buyers and many sellers. The many mean no buyer…

Q: was the west fraser timber company always been classified as perfectly competitive market in the…

A: When talking about the competitiveness of a firm, it can be said that it is determined by the market…

Q: Correctly illustrate the market and firm in perfect competition: In a market for propane, a…

A: In a perfectly competitive market, when a firm is earning economy profit, it is the situation when…

Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…

A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…

Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…

A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…

Q: Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate…

A: The firm produces output at a profit-maximizing or loss-minimizing level of output which can be…

Q: If a firm's total revenue is $100, it's total cost is $130, and its total fixed cost is $40. Should…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

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: Distinguish the difference between the market demand curve and the demand curve that a particular…

A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…

Q: A large city has nearly 500 restaurants, with new ones entering regularly as the population grows.…

A: A perfectly competitive market alludes to a market structure in which there are countless firms and…

Q: Explain how a firm would maximise its profit, assuming that it faces conditions of perfect…

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

Q: Explain the feature of the large number of the sellers and the buyers in the perfect competition

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Why is Perfect Competition an ideal market structure? Please explain

A: In a market, a perfect competition is considered as an ideal market when there is other markets like…

Q: Using an appropriate diagram, explain how a perfectly competition firm achieves profit- maximising…

A: The structure of the market where there exist many firms who sell homogenous goods to many buyers…

Q: Explain why a perfectly competitive firm won’t advertise.

A: In perfect competition, there are a large number of buyers and sellers where the latter do not have…

Q: Why does perfect competitive market need to be maintained?

A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…

Q: What are the conditions that distinguish perfect competition from other market structures?

A: In case of Perfect Competition there are large number of buyers and sellers selling identical…

Q: In perfect competition, the firm's above AVC has the identical shape of the firm's supply curve

A: To find:  In perfect competition, the firm's above AVC has the identical shape of the firm's supply…

Q: How does perfect competition lead to allocative and productive efficiency? Perfect competition leads…

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

Q: The following attached graph represents the situation of Sindbad’s caps, a firm selling caps in the…

A: In a competitive market, the firm will earn more and more profits when the revenue that is marginal…

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

A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…

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: Using examples, explain the down-sloping and upsloping long run ATC. Why may pure competition earn…

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

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

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Q: Based on the graph above, answer all the questions below. a) Justify the type of market structure…

A: There is two markets that we can consider: 1- Perfectly competitive market 2- Imperfect market Under…

Q: How does a firm in perfect competition decide what price to charge? What quantity to produce?…

A: A perfect competition(PC) market is one with many consumers and sellers producing identical…

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: Instructions: Round your answers to the nearest whole number. (c) Calculate the firm's total profit.…

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

A: (1) The equilibrium condition for profit maximization of a perfectly (PC) competitive firms is…

Q: choose 1  if, for the last unit of a good produced by a perfectly competitive firm, MR>MC, then in…

A: MR is the additional revenue earned by last unit produced, and MC is the additional cost incurred by…

Q: Strictly speaking, pure competition is relatively rare. Then why study it?

A: Pure competition is a business condition where similar goods are sold by a wide number of individual…

Q: MR Quantity (A) AMR Quantity (B) MR MR Quantity (C) D Quantity (D) Which of the above shows the…

A: It is the market where the condition is different from perfect competitive firms.

Q: By making use of graphs explain the difference between perfect competition and monopoly market.…

A: Monopoly and perfect competi­tion are two extremely opposite kinds of market structure. In the case…

Q: How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a…

A: A competitive firm determines its profit maximizing level of output when P= MR= MC  When the…