The supply curve for a perfectly competitive firm is its marginal cost curve as the firm should always produce at the output level where price equals marginal cost. O True O False
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- Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
- What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity of output?A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?How does an increase in market demand for a product in a perfectly competitive market affectthe short-run and long-run equilibrium? Show on a diagram and discuss the adjustments firms make in terms of price and quantity to reach the new equilibrium. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- If economic profits are being made in a perfectly competitive market, then firms will ________the market. This will ________ the extra revenue firms earn for each unit of output sold. What is the misisng words?Draw a diagram for a perfectly competitive industry with firms earning normalprofits in the long run. Assume that all firms in the industry use oil as key inputs.Using an appropriate diagram, illustrate an increase in the price of inputs. Will firmlevel profits increase or decrease and will market supply increase or decrease?A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s supply function. Is this supply functionfor the short-run or the long-run? Graph all the relevant curves to illustrateyour answer.
- What assumptions are necessary for a market to be perfectly competitive? Explain why each of these assumptions is important. Consider the market for wheat which is a perfectly competitive market. Is the market demand curve the same as the demand curve facing an individual producer? If not, explain how and why they are different? Lastly, of the following industries, which are perfectly competitive? For those that are not perfectly competitive, explain why. a. Restaurants b. Corn c. College education d. Local radio and television It should be atleast 2 to 3 word pages with work cited pageCourse: Microeconomics A given firm, which is part of a perfectly competitive market, would have following cost function: TCLR = 2X3 - 20X2 + 200XWhat will be its level of output (X) and long-run equilibrium price (P)? NOTE: TCLR is long run total cost functionA perfectly competitive market has a demand curve given by the equation Q = 2000 − 2p where Q is the market quantity demanded and P the price per unit. Each firm in the market has the total cost given by TC = 1000 + 100q + 10q' and the marginal cost MC = 100 + 20q If the current market price is $400, 1. Calculate the market quantity , profit and quantity maximizing profit for each firm and Graph your results. OK 2. Suppose that the market is in the long run.How much profit will each firm earn and what will be the market price and What is the market quantity and price ? 3 How many firms operate in this market
