Please give an example of a market that comes close to being considered perfectly competitive. What does it mean when firms in a perfectly competitive market earn $0 in economic profits? rite at least one brief paragraph. In addition, it is required to reply to at least two other students' posts by of
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- Question 7 Which of the following characteristics is required for a perfectly competitive market? Group of answer choices The goods offered for sale are exactly the same. There are so many buyers and sellers that no single buyer or seller has any influence over the market price. It is difficult for new sellers to enter the market. Both a and b are correct.60. In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run? A. an increase in labor costs B. a decrease in market demand C. an increase in market demand D. an increase in the number of firmsQuestion 1 Which of the following is not a characteristic of a perfectly competitive market? Group of answer choices Firms are able to sell all of the output that they choose to produce at the market price. Individual firms are price setters. There is free entry and exit. Firms produce identical goods.
- Question 1c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm?Refer to the figure above. In the perfectly competitive market, the small business owner will have $____ of profits. A)0 B)32 C)80 D)80.5Explain whether the statement is valid on not. There are perfect knowledge among the buyers and sellers in a perfectly competitive market
- I need both answer Question 17 Which of the following statements is true about a firm in a perfectly competitive market: Question 17 options: A firm will leave the market in the long-run if price equals marginal revenue. A firm will leave the market in the long-run if total revenue is lower than total cost A firm will leave the market in the long-run if price equals marginal cost. None of the above Question 18 The government is concerned about the dead weight loss that its taxation is creating. Which of the following steps would achieve the greatest reduction in deadweight loss: Question 18 options: Lowering the tax rate on a good on which taxes are currently high Lowering the tax rate on a good on which taxes are currently low Decreasing the tax rate on a good according to the Laffer curve Increasing the tax rate on a good according to the Laffer curveIn a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's long-run decision? Group of answer choices 1. how much to spend on advertising and sales promotion 2. what price to charge buyers for the product 3. whether or not to enter or exit an industry 4. the profit-maximizing level of outputAssume that you have a representative farm producing wheat in a perfectly competitive market. The overall demand for wheat is made up of two components – domestic demand and foreign demand. Due to tariff disputes with the U.S., the European Union (EU) has urged its member nations to reduce their demand for U.S. agricultural products (including wheat). As a result, the foreign demand for U.S. wheat has declined by 20% this year. Using diagrams for a representative farm (i.e., wheat producer) and the market for wheat, analyze the impact of this decrease in foreign demand on the farm’s output and profit (loss) in the short-run and long run. Assume that the farm was in long-run equilibrium (i.e., earning zero economic profits) before the decrease in the foreign demand for wheat. Also, assume that the farm was facing a U-shaped AC curve and the typical upward-sloping MC curve. Provide a brief description of all the changes that occur and be sure to clearly denote those changes in your…
- Question 5.5. T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should shut down in the short run. decrease output to 2,500 units. ontinue to produce 3,000 units. increase output to 3,500 units. Question 6.6. A firm should increase the quantity of output as long as its marginal revenue is greater than its marginal cost. marginal cost is greater than its marginal revenue. average revenue is greater than its average total cost. average revenue is greater than its average variable cost. Question 7.7. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is equal to the price. less than the price. greater than the price. equal to the average cost. Question 8.8. The classic…Which of the following characteristics does NOT describe a perfectly competitive market? Question 2 options: There are many people who desire and have the ability to purchase the product. Companies are able to enter and exit the market without any restrictions. Firms set different prices for their product, either at or above the equilibrium price. Many firms are producing identical products