Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…
A: In a perfectly competitive market, there will be a large number of sellers, which means that a…
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: b) Use the MR, MC, and ATC curves along with supply and demand to show how profits will go to zero…
A: Solution: Perfect Competition: It refers to the market situation in which there are large number of…
Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run? Would…
A: A market will be perfectly competitive when a larger group of suppliers serve identical or…
Q: The Watts Brewing Company owns valuable water rights that allow it to produce better beer than…
A: Economic profit: The difference between the sales revenue and all input cost plus the opportunity…
Q: Financial value of the firm increases when the firm generates economic returns, in the context of…
A: The value that in turn determines the well-being and health of a firm during the long run depicts…
Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…
A:
Q: A perfectly competitive firm does not increase its quantity of output without limit, even though it…
A: Answer: Introduction: A perfectly competitive firm is a price taker. In perfect competition, firms…
Q: At that price ($3), what is the profit that Farmer Johnson earns in the short- run? (Please enter…
A: Total cost = Average total cost * quantity Total revenue = Price * quantity Profit = Total revenue -…
Q: What are the major characteristics of a firm competing under conditions of perfect competition?
A: The perfect competition is a market structure which is characterized by the presence of a large…
Q: 15) The competitive firm's long-run supply curve is that portion of the marginal cost curve that…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: Explain what is Perfect Competition with example and list 3 features of Perfect Competition market
A: There are different type of market structures like Perfect Competition, Monopoly , Monopolistic…
Q: Why is it important for managers to understand the mechanics of supply and demand both in the short…
A: The terms "long run" and "short run" do not relate to a specific time period like three months or…
Q: Consider the following goods and services. Which are the most likely to be produced in a perfectly…
A: Perfectly competitive market: It has the greatest possible level of competition.
Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?
A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…
Q: A perfectly competitive firm showing a profit
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Jackson Hardware, a firm in the perfectly competitive custom hardware industry, asks you for your…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: Under the assumption of perfect competition in short run firms only earn abnormal profit.…
A: The statement is false.
Q: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: ABC company had decreasing returns to scale at all levels of output and it is divided up into 2…
A: The measure that depicts the change in output of industry or firm which results from a proportionate…
Q: Perfect Competition: What are the key features of a perfectly competitive market? Many buyers and…
A: Question 1 is only answered. Post the remaining question again.
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: With the help of an example explain the difference between accounting and economic profit. Building…
A: The term perfect t competition refers to a theoretical market structure. during a perfect…
Q: Goldbar is an energy bar firm selling in a perfectly competitive market but is considering the…
A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…
Q: In the short-run model of perfect competition, there is always a range of prices above the shutdown…
A: When talking about a perfectly competitive firm it can be seen that the firm will stay in the market…
Q: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that…
A: In a perfectly-competitive market, there are theoretically infinite number of frim. Each firm here…
Q: Explain the implications of large number of buyers and sellers in a perfectly competitive market.
A: In a perfectly competitive market structure there are large number of buyers and sellers and all the…
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: he graph attached illustrates the Demand, Marginal Revenue, Marginal Costs, Average Total Costs and…
A: A perfectly competitive earns zero economic profit in the long run .Break even price is that price…
Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…
A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: Why are abnormal profits of a firm difficult to sustain?
A: The abnormal profits under perfectly competitive market are difficult to sustain because of the free…
Q: "There are some technologies for which it is impossible to maximize profit in the long run. "…
A: Maximization of profits occur at the point where the marginal revenue and marginal cost are equal.
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Q: a) George's hair-cutting business is a profit-maximizing, perfecetly competitive firm. George…
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Q: McDonald's is a fast-food restaurant chain. Which of the following would be a long-run decision for…
A: Here, it is given that McDonald's has a fast-food resturant chain , which implies that it has many…
Q: A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm…
A: In perfectly competitive market price is constant so it is equal to marginal revenue. At profit…
Q: Explain why a company would shut down in the short run.
A: The shut down point is the point at which a firm decides to seize its operations in the short run…
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: In a perfectly competitive market, firms:
A: When there are large number of buyers and sellers in the market striving for a product then there…
Q: the assumptions of perfect competition?
A: To find : Assumption of perfect competition.
Q: C. Table below shows some cost data for a perfectly competitive firm i. Is the firm operating in…
A: The perfect competition is a type of market which is characterized by a large number of buyers and…
Q: Q6. Agriculture in India is mostly characterized by Perfectly Competitive Market! What are the…
A: A perfectly competitive market is where there are a large number of producers in a number of…
Q: Goldbar is an energy bar firm selling in a perfectly competitive market but are considering the…
A: Perfect competitive market: It refers to the market under which various firms are selling goods and…
Q: Graph using MC and MR curves for a firm operating in a short-run perfect competition market to make…
A: Perfect competition is a competition that involves the presence of a large number of firms producing…
Explain the shape of the SR supply curve of a
diagram. Is the stock market an example of perfect competition? Why or why not?
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- What are the assumptions of perfect competition? What are the prospects for profitability in the short-run and long-run under perfect competition?Under the assumption of perfect competition in short run firms only earn abnormal profit. True/False. Explain your answer theoretically and graphically?Many large corporations, such as General Motors and Apple, operate in markets that are not even close to perfectly competitive. But unlike the products these companies sell, shares of these firms’ common stock are bought and sold in what could be described as a perfectly competitive market. Based on the three conditions that make a market perfectly competitive, what characteristics of the purchase and sale of shares of stock of a large company like GM or Apple, are consistent with perfect competition?
- Under what conditions would a firm decide to shut down in the short run but remain invested in the market in the long run? Explain your reasoning.If all assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development?Question: Under the assumption of perfect competition in short run firms only earn abnormal profit. True/False. Explain your answer theoretically and graphically.
- Define perfect competition. Does a firm under perfect competition always make supernormal profit? Explain your answer with appropriate diagrams.ABC company had decreasing returns to scale at all levels of output and it is divided up into 2 equal- size smaller firms, what would happen to its overall profits? Discuss.Refer to the characteristics of perfect competition and examine the hawker industry in Singapore. Do you consider the hawker industry in Singapore perfectly competitive? Justify your answers.