Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries.

Q: Explain how economies of scale keep new firms from entering an industry in which firms are earning…

A: Economies of scale refer to that part of long-run average cost whereby producing more and more units…

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 how the long-run equilibrium in a perfectly competitive industry achieves 'allocative…

A: When profit-maximizing companies in perfectly competitive markets combine with utility-maximizing…

Q: The table below displays cost information for a firm operating in a perfectly competitive market.…

A: A perfectly competitive market is the market with large number of buyers and sellers, selling…

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: Will a Perfectly competitive market display productive efficiently? Why or why not?

A: A perfectly competitive market is the one where there are a large number of buyers (consumers) or…

Q: What are the assumptions of perfect competition?  What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: . What will be the rate of return earned by most firms in the industry in long-run equilibrium? 8. *…

A: Answer e) Firms will keep existing until most firms earn a rate of return equal to 10% therfore the…

Q: Which of the following is not an essential condition of pure competition?

A: Perfectly competitive market refers to the market structure where the large number of buyers and…

Q: Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these…

A: Given : Roots Wholefoods sells fruits and vegetables in a perfectly competitive market.

Q: Choose the one alternative that best completes the statement or answers the question. i) Perfect…

A: Option D ie considerable advertising by individual firm In case of Perfect Competition, there are…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

A:

Q: Analyze why perfectly competitive firms are not able to raise prices

A: Answer - Perfectly competitive Firm - Perfectly competitive firm are the firms who are price taker…

Q: opic : Industry equilibrium Question : What determines the number of firms in an industry (a) in…

A: Industry is said to be in equilibrium in short run when it’s total output remains steady. Also when…

Q: According to this quote from the UK Guardian newspaper, which of the diagrams best represents the…

A: The gaur bean industry represented in the above question is example of perfect competition, where…

Q: If all assumptions of perfect competition hold, why would firms in such an industry have little…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

Q: There is no incentives to innovate in a perfect competition market. Do you agree? Explain.

A: When talking about perfectly competitive market, it is the place with a large number of buyers and…

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

Q: Firms always lose money in a long-run industry equilibrium, true or false?

A: Firms always lose money in a long-run industry equilibrium, true or false.

Q: The vast majority of industries are probably not perfectly competitive. Why then do you suppose…

A: * ANSWER :-  * Perfect competition is the most straightforward industry structure, and it serves as…

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: 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: Explain why a perfectly competitive firm would or would not advertise.

A: Perfect competition refers to the type of market organization in which there are many buyers and…

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: explains why in perfect competition, there are no economic profits or losses in the long run?

A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…

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: ider Alpha (firm 1) and Bravo (firm 2), two types of firms in a competitive industry with cost…

A: Since you have posted multiple questions, we will solve the first one for you. If you want any…

Q: The salmon fishery on Vancouver Island has historically been one of the world’s richest. Over the…

A: Business strategy: A procedure is a drawn-out arrangement that you make for your organization to…

Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…

A: Perfect competition refers to a market situation in which there are many buyers and sellers in the…

Q: Distinguish among three types of imperfectly competitive industries and describe how imperfect…

A: The three types of imperfectly competitive industries are: Monopoly, Oligopoly and Monopolistically…

Q: How do the entry and exit of firms in a purely competitive industry affect resource flows and…

A: Answer - Need to find - How do the entry and exit of firms in a purely competitive industry affect…

Q: What are the advantages of scale in capitalist competition

A: GIVEN   the advantages of scale in capitalist competition   Defination of scale: means cost benefits…

Q: You witnessed new firms entering a competitive market. What can you infer for the existing firms in…

A: In a market, new firms generally enter if they can see an incentive to generate profit and it is the…

Q: Which of the following is true concerning purely competitive industries?

A: The perfect competition market consists of a large number of sellers who are price takers as the…

Q: Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making…

A: In a circumstance of amazing contest, regardless of whether an organization acquires benefits or…

Q: Assuming that the market for cigarettes is in perfect competition, what do allocative and productive…

A: In a perfectly competitive market, when both the profit-maximizing firms and the utility-maximizing…

Q: In perfect competition, a firm has __________ market power.     A. No     B. High     C. Low…

A: Option (A).

Q: Consider the following two industries the rice industry and labtop industry. Which industry would…

A: Answer - Perfect Competition - Perfect competition is the market structure which lots of firm and…

Q: Describe a perfectly competitive market structure and its characteristics?

A: Perfectly competitive market structure is the market structure in which,there is no or negligible…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).