The elimination principle is the idea that profits are eliminated by firms exiting the industry and losses are eliminated by firms entering the industry.   true

Q: Why is marginal revenue for a firm in perfect competition equal to the market price?

A: The increase in revenue that comes from selling one more unit of output is known as marginal revenue…

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: Use the following information for this question: Price = $10.00 per unit Quantity sold = 45,000…

A: Total revenue =price * quantity =10*45000=450000

Q: A firm was producing at profit maximizing output and decided to shut down. Which of the following is…

A: The profit of the profit maximizing firm is maximized at a point where marginal revenue is equal to…

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: Which condition is correct for a firm wanting to maximize profit: a.MPK > MRPK b.MRP = MC c.MPL =…

A: Profit maximization refers to the level of output and price where a firm, industry or household…

Q: Find short run industry supply for 60 firms, in perfect competition. Each with TC = 5q + 15q^2 +20…

A: Each firm sells at a point where price is equal to marginal cost  Equilibrium in the market occurs…

Q: When a firm makes profit, this sends a signal to others. More competitors would enter the business,…

A: When there is free entry and exit in the industry, all firms will earn zero economic profit in the…

Q: Discuss briefly why competition exists in the industry? Give atleast Five reasons.

A: Competition in the industry exists due to following 5 reasons:- 1) Product features 2) Number of…

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: We're leaving the competition behind! Cuppy's Coffee Drive Thru Cafe is the only coffee outlet…

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Which of the below is FALSE under perfect competition in the long-run? A. there is no producer…

A: Perfect competition: It is a market structure where there are a large number of buyers and a large…

Q: When output increase then difference between TVC and TC  ____

A: The firms, and businesses tend to operate in the market with the motive of earning revenue, and…

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: One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex…

A: Given Frankie and Alex Specialty Products brand manager Steve Fischer's practice of making…

Q: The level of competition be more intense when demand is growing fast versus when there are many…

A: The situation that depicts two or more parties striving for a goal that could not be shared and…

Q: Consider an industry with that contains the following firms Total Revenue Firm A $45,000 Firm B…

A: Market share of firm n = total revenue of the firm n*100 / total revenue of industry

Q: For a firm operating in a competitive industry, which of the following statements is not correct?…

A: Perfectly competitive market is such a market where there are very large number of buyers and…

Q: Relate opportunity costs to why profits encourage entry into purely competitive industries and how…

A: Opportunity cost is the money that is sacrificed to do a specific economic activity. It is the gain…

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: There are three identical firms in the market research industry. The demand is 1 – Q, where Q = q1 +…

A: The firms attempt to maximize their profits by choosing the output to be produced. Profits are equal…

Q: In perfect competition, price is _____________.     increasing.      decreasing.      none of…

A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.

Q: The two figures below show (on the left) the industry supply and demand for wheat and (on the right)…

A: Demand and Supply  Demand is the amount of a commodity that consumers are willing to purchase at…

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: What principle explains why tech companies are leaving California for Texas but movie studios are…

A: Perfect Competition refers to the condition of the market of a good or service where all firms sell…

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: Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors…

A: Perfect Competition is a market situation where there are large number of buyer and seller s dealing…

Q: The size of a firm is more important than market share in determining market power for an industry…

A: Market share is very important for market power related to industry or product,because it increases…

Q: True or false: In a perfectly competetive market, when AVP<P<ATC, a firm will not produce any output…

A: Under perfect competition, there are a large number of firms who sell identical goods. The buyers…

Q: In perfect competition there are no barriers to entry for firms. Which of the following would be a…

A: A perfectly competitive market is one with no barriers that allow firms to enter or exit the market…

Q: Consider an industry with that contains the following firms Total Revenue Firm A $45,000 Firm B…

A: Total market revenue will be the sum of each firm’s revenue in the industry.

Q: A firm in perfect competition has no influence on market price True False

A: Pure or perfect competition is a market structure which has following features : All firms sell an…

Q: A profit-maximizing firm in a competitive industry has the cost structure shown in the table below.…

A: AVC=ATC-AVC Quantity ATC AFC AVC MC 1 25.00 20.00 5.00 4.20 2 14.40 10.00 4.40 3.60 3 10.87…

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: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Scenario Competitive? Scholastik Inc. owns the U.S. copyright to a popular book series. It is the…

A: Competitive market structure is also called perfect competition. In long run, firms in perfect…

Q: In perfect competition, the maximum benefit is achieved where the vertical difference between total…

A: Perfect competition is characterized by free entry and exists, no barriers, no transaction costs,…

Q: uppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech…

A: In a market being perfectly competitive, the long-run equilibrium occurs when marginal costs equal…

Q: PROBLEM Two firms (1 and 2) with total costs TC:(q) = 60q and TC2(q)=120q (hence the marginal costs…

A: Here two same products are being produced by the two firms firm 1 and firm 2. so, we have price of…

Q: Please refer to the figure above. The competitive market player will produce ____ units of output.…

A: A perfectly competitive market is produce at a point where price is equal to MC From the figure,…

Q: Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain…

A: The S-C-P method predicts performance depending on market structure by analyzing businesses'…

Q: TC=100+20q+q2 MC=20+q2 assuming perfect competition  If the price is $100 & there are 1,000…

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