True or false: In a perfectly competetive market, when AVP

Q: See the graph below, Label and Describe in terms of : A. Name of Market Structure B. Ability to…

A: Anser is given below

Q: Discuss the economic conditions that are necessary to achieve productive and allocative efficiency…

A: Productive efficiency: The productive efficiency exists at a level where per unit cost of producing…

Q: Assume perfect competition takes place in the market for hotel rooms. The the current market…

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: Firms in the market for soccer balls are selling in a purely competitive market. A firm in the…

A: Average Variable Cost is defined as the variable cost per unit of a good. Average Total Cost is…

Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.

A: In perfect competition, there is homogeneity in the products sold by the consumers. This means that…

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

A: The perfectly competitive is the type of firm where there are large number of buyers and sellers.…

Q: EXAMPLE: Paulo's Ping Pong Balls Is a firm that operates in a competitive market. The ping pong…

A: The firm is a part of competitive market.

Q: If the corn industry is perfectly competitive with a market price of $2 per bushel and a corn farmer…

A: A market formed by the agglomeration of a large number of firms identical in size that produce and…

Q: Leisure Enterprise's total cost of producing speedboats is given by TC = 10Q3 - 4Q2 + 25 Q +500 (MC…

A: The difference in total production costs caused by creating or producing one extra unit is known as…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: For the equilibrium price & quantity under perfect competition:

Q: Fill in the columns in the following table. What quantity should a profit-maximizing firm produce?…

A: Formula used for completing the table below: TC = TFC + TVC MC = TCn - TCn-1 TR = P*Q Profit = TR -…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: Suppose that purely competitive firms producing cashews discover that P exceeds MC. Is their…

A: The purely competitive firm produces cashews with price that exceeds the marginal cost. Thus, the…

Q: Johnson’s pig farm faces a demand curve given by Q = 40 – 2P and has a constant marginal and average…

A: Answer: Given, Demand function: Q=40-2P Average cost=Marginal cost= $15.50 Let us convert the demand…

Q: You observed that in the long run, a profit-maximizing firm chose to exit a market. What can you…

A: There is a difference between the cost function in the short-run and in the long-run due to which…

Q: why do economists and policy makers use perfect competition as a benchmark to analyze market…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Fabulous Farms operates in a perfectly competitive market. Which of the following is required for…

A: In a perfect competition market there is large number of buyer and sellers of good, also in…

Q: A firm will realize the highest level of profit if it is able to engage

A: The monopoly would result in the single seller and many buyers in the market. The monopoly would…

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

A: Here, the first graph shows the market for wheat and the second graph shows cost functions of a…

Q: Brown grows peaches in Georgia. Suppose the market for peaches is perfecty competitive and that the…

A: A perfectly competitive firm maximizes profit or minimize losses by producing output at a level…

Q: briefly make a comparison between output maximization criteria and profit maximization criteria with…

A: The profit-maximizing level of output for a monopolist is determined by equating its marginal…

Q: Show what happens in the short run on both graphs when a new medical study shows soybeans to be…

A: The market demand curve is a graph that depicts how many things buyers are willing and able to buy…

Q: The equilibrium of a competitive industry is:   A neither efficient nor equitable   B equitable…

A: A competitive industry is one with many sellers and many buyers. In this market, a large group of…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A:

Q: If Wikipedia were provided in a competitive market, and the contributors of Wikipedia were only in…

A: Competition is the battle between producers to increase profits, increase sales, and so on. To look…

Q: Two firms in a local shopping center are losing money. Firm A has high fixed costs and relatively…

A: The short run is a period of time in which the quantity of at least one input is fixed and the…

Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…

A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…

Q: Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the…

A: The change in total cost to change in output is known as marginal cost. The marginal cost is the…

Q: Suppose that the market for black leather purses is a competitive market. The following graph shows…

A: If a firm is perfectly competitive, it can sell as much as it wants as long as it accepts the…

Q: Assuming the market equilibrium price for tomatoes is $1.75 per kilo in perfect competition market.…

A: Marginal revenue: Marginal revenue is defined as the additional revenue earned by a firm due to the…

Q: The graph above illustrates the electricity market. Consider market competition between firms where…

A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…

Q: Consider the information of Firm C on the attached figure and answer the following: Calculate TVC…

A: When the price falls below the minimum of the average variable cost then the firm has to shut down.…

Q: List and explain the importance of each of the five characteristics of purely competitive markets.

A: It is a market circumstance where there is an enormous number of seller of an item which can't be…

Q: What type of industry has the characteristics where there are many producers, they are able to…

A: The industry is said to be Monopolistic Competition. Monopolistic competition is the market…

Q: The firm depicted by the graph below is producing q0 level of output. Given its costs, is the firm…

A: In this graph, P = MR indicating the constant price at all level of output.

Q: Suppose that the figure below represents coffee shop owners in Alsancak. The downward sloping line…

A: Here, the given graph represents the coffee shown owners. At the equilibrium level, there will be 50…

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: (6+6+6+6+6+6 points) The graph below displays the short-run average variable cost (AVC), the…

A: The market operates in short run The market is perfectly competitive The AVC, ATC and MC curve are…

Q: By making use of graphs explain the difference between perfect competition and monopoly market.…

A: Monopoly and perfect competi­tion are two extremely opposite kinds of market structure. In the case…

Q: Most smartphones in the United States use Apple's IOS or Google's Android operating system. What…

A: Duopoly: - Duopoly market is a market in which there are only two sellers of a product in the…

Q: Discuss why a firm in perfect competition may choose to be open on Mondays, typically the slowest…

A: Perfectively competitive firm:-

Q: Briefly describe the spectrum of competitive situations faced by firms in markets.

A: Monopoly, perfect competition, monopolistic competition, and oligopoly are the different competitive…

Q: Which of the following economists was an originator of the theory of imperfect competition?…

A: The correct answer with detailed explanation is as follows:-