The optimal level of production for any company is the level of production that either maximizes profits or minimizes losses.  How does one determine the optimal level of production for any business?  Explain. Explain why a company would shut down in the short run. Explain how a company could choose to get bigger, yet lower their average costs? What are the major characteristics of a firm competing under conditions of perfect competition? What are the major characteristics of a firm competing under conditions of monopoly? How does a demand curve differ in perfect competition from a demand curve in a monopoly? Name an example of a local monopoly?

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…

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

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A: It is given that   MC (in $) Output 5 100 10 200 20 300 40 400 70…

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A: A competitive firm is a price taker and can sell any quantity of output at the market determined…

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A: A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…

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A: Perfect competition is a type of market structure.

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A: Note: You have uploaded multiple questions at a time. Hence we shall answer only the first one for…

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Q: Use the information provided below for Questions 17, 18, and 19. There are 100 perfectly competitive…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: The basic model of pure competition reviewed in this chapter finds that in the long run all firms in…

A: The pure competition indicates that the market is perfectly competitive. The main features of the…

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: A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of…

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Q: Suppose that the market for candy canes operates under conditions of perfect competition, that it is…

A: First price was $0.10 Cost increased by 0.05 0.10+0.05=0.15

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A: A perfectly competitive firm is a price taker and maximizes profit by producing at P =MC

Q: Fill the table below given Perfect Competition Conditions   Quantity Demanded/ Produced Total…

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Q: Describe how a firm in perfect competition makes profit-maximizing decisions

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

Q: A firm operates in a perfectly competitive market. Its marginal cost = to its marginal revenue. It…

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Q: M/c question - Micro 29) What is a characteristic of a perfectly competitive market?  A. Goods…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: he auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General…

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Q: Suppose you are a perfectly competitive firm producing computer memory chips. Your production…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Explain why a profit-maximizing competitive firm would produce up to the point where price equals…

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Q: Why are marginal revenue and price equal for competitive firms? Price equals marginal revenue…

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Q: The auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General…

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Q: A perfectly competitive firm sells its good for $20. If marginal cost is four times the quantity…

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Q: Fill in the blanks:  1. If the market price equals a firm’s break-even price, the firm earns its…

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Q: Suppose all firms in a perfectly competitive market structure are in long-run equilibrium. Then…

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Q: The purely competitive firm in the above exhibit should a. shut down b. produce 5 units of output c.…

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Q: Quantity  Fixed Cost  Variable Cost Total Cost Marginal Cost 10 200 50 250 0 20 200 100 300 5 30 200…

A: In perfectly competitive market, price is constant and it is equal to marginal revenue. Marginal…

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…

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A: A perfect competitor exist the industry when Price < ATC (or TR < TC) and firm is incurring…

Q: In a perfectly competitive market with constant cost industry and with the market demand…

A: Let this be the long run TC= 100 + 4q2 Then ATC=TC/q LRATC=100/q+4q Minimizing this :Putting the…

Q: Explain how purely competitive firms can use the marginal-revenue–marginal-cost approach to maximize…

A: The use of marginal cost and marginal revenue is such that when prices are more than the minimum…

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: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…

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Q: Refer to this table to answer the next three questions. The accompanying table represents the…

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Q: Suppose all firms in a given industry have the same supply curve given by S,(p)p/4. Plot and label…

A: The supply curve of each firm is given to be: Si(p) =p/4 There are 4 firms in the industry, so the…

Q: Using diagrams for both the industry and a competitive firm, illustrate competitive long-Run…

A: A competitive industry consists of a large number of small firms that lack a relevant individual…