Under what conditions will a firm exit a market? Explain theoretically and graphically.

Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that

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

Q: Consider a perfectly competitive market for wheat in Denver. There are 80 firms in the industry,…

A: Answer; Note: Short‐run supply curve of a firm is the portion of the marginal cost curve that lies…

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: Consider the graph of a firm in a perfectly competitive market to answer the question below: P. MC…

A: ANSWER     The level of profit maximization depends on various factors such as the efficiency of…

Q: Which of the following conditions describe a perfectly competitive market?

A: Perfectly competitive market is a rare type of market which is difficult to find in the real…

Q: Distinguish the difference between the market demand curve and the demand curve that a particular…

A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…

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

A: Since Brown is a perfect competition, Farmer Brown will charge the price of $22 per box of peaches.…

Q: $ ATC MC AVC $85 $70 $60 $50 $40 $30 Suppose the market for wheat is competitive and its supply side…

A: Perfect competition is a market structure in which there are large number of firms selling…

Q: competitive market

A: A. If the price = AC = MC, then the market is competitive and incurring economic loss.

Q: Refer to the figure below. Assuming the firm chooses the level of output that maximizes profit, what…

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: f a competitive industry is incurring normal profits, output will

A: Competitive Industry is the industry sector where the firms are free to enter and exit from the…

Q: Firms in an industry have the following cost function: C(q)=3q3-6q2+4q. If the market is perfectly…

A: C = 3q3 - 6q2 + 4q Divide C w.r.t q to get AC => AC = (C / q) => AC = 3q2 - 6q + 4…

Q: How much should a firm sell of a particular product in order to maximize profit? What factor does it…

A: A firm should maximize profits and bring in the output level, where there would equilibrium point…

Q: What are the options available to a firm when the market demand exceeds capacity?

A: Here's a set of features that assist companies in proactively addressing excess demand and…

Q: Use a graph to show the situation that would prevail in a competitive market where firms are earning…

A: Perfect competition is a market form wherein the firms produce and sell homogenous goods and…

Q: The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive…

A: Answer to the question is as follows :

Q: Why would a firm that incur choose to produce rather than to shut down?

A: When the revenue from the sale of the goods or services produced is insufficient to pay the variable…

Q: Is it true that a firm in a perfectly competitive market will never be able to earn positive…

A: There are different types of market which are broadly grouped as: Perfect competition and Imperfect…

Q: Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The…

A: Accounting profit refers to the net income for a corporation or sales less costs. You may calculate…

Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

Q: Under what conditions will a firm shut down temporarily? Explain theoretically and graphically.

A: Firm would shut down temporarily,if it is not able to cover the fixed cost. For this,price has to be…

Q: Firms always lose money in a long-run industry equilibrium, true or false?

A: Firms always lose money in a long-run industry equilibrium, true or false.

Q: The following data for a small farm operating in a perfectly competitive market are given in the…

A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…

Q: In the graph below, if the HDTV industry is a constant cost industry, then represents the short run…

A: In the long run for competitive market there is free entry and exit.

Q: The wheat market is perfectly competitive, and the market supply and demand curves are given by the…

A: Equilibrium price and quantity is those quantity and price where market demand and supply is equal…

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

A: The marginal cost of creation is the adjustment of absolute creation cost that comes from making or…

Q: Under what conditions will a firm exit a market?Explain

A: A market refers to the system in which the exchange of goods and services takes place in terms of…

Q: Derive theoretically and graphically the supply curve of an industry.

A: The supply curve shows the relationship between the quantity supplied and the prices, it depicts the…

Q: Economics Explain (in detail with example) three assumptions for the perfectly competitive market.

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Which of the below will NOT occur if exitings firms are earning positive economic profits in a…

A: The perfectly market would result in the many buyers and many buyers sellers in the market. The…

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: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

A:

Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…

A: Average cost is the ratio of the total cost and the total output produced. Whereas, the marginal…

Q: In the long run, any firm will eventually leave the industry if

A: In the long run, any firm will eventually leave the industry if price :

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

A: We will use concepts such as Profit maximisation under perfect competition market structure.

Q: Which of the following would not help a firm to improve its competitive position?

A: Market Positioning:- Competitive positioning is a term used to describe how well a marketing people…

Q: Suppose the book-printing industry is a competitive market, and it begins with a long run…

A: There are two possibilities, since you did not mention if the firm is incurring profit or loss in…

Q: If demand for the peach industry is given by P=100-.04Q and supply is given by P=.01Q.Assume the…

A:

Q: A firm sells a product in a purely competitive market . The marginal cost of the product at the…

A: The firm produces various goods and services. The competitive market would result in many buyers and…

Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…

A: The quantity, q = 100 The average revenue is given as = $10 The formula for total revenue is as…

Q: In the long run equilibrium of a competitive market with identical firms, what is the relationship…

A: The firms are identical and in the long-run equilibrium of a perfectly competitive market, the…

Q: You witnessed new firms entering a competitive market. What can you infer for the existing firms in…

A: In a market, new firms generally enter if they can see an incentive to generate profit and it is the…

Q: Only one firm able to produce profitably in a market given demand and costs describes a ____?

A: A monopoly market's features enable the sole seller both the market operator and the value creator.

Q: Explain the effects firms entering or exiting have on the price and supply of a market. (assume the…

A: A perfectly competitive market is a type of market structure in which a large number of small firms…

Q: Consider a profit-maximizing firm in a competitive industry. For each of the following situations,…

A: In a competitive industry, the profit of a firm gets maximized at the point where marginal revenue…

Q: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…