Use a graph to show the situation that would prevail in a competitive market where firms are earning economic profits. Can this scenario be maintained in the long run? Carefully explain your answer.

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition exist when there are large number of buyers and sellers in the market and the…

Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…

A: Economic profit is defined as difference between revenue that is received from the sale of a good or…

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: A perfect competition is a market structure where the price of the commodity sold is same and is…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: the demand curve for a competitive firm is

A: A competitive firm is a price taker, since it operates in a market that has many buyers, and many…

Q: Imagine that you set up your own business. Assume that your firm produces a single product. Please…

A: Perfectly competitive market: It is the market where large number of buyers and sellers dealing in a…

Q: Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a…

A: If CEQ announces that the chemical in tuna helps to prevent from spreading, then the consumer will…

Q: When might a competitive firm shutdown in the short run and exit the market in the long run?

A: When a perfectly competitive firm finds itself in shutdown, that is, its market price is equal to…

Q: In class we said that the firms like firm X in perfect competition are price takers, it implies that…

A: Perfect competition is the one of structure of market in which many numbers ofbuyers and sellers…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Note: As per the guidelines we will answer only three subparts. Please resubmit the question again…

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: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A:

Q: An arugula store in a perfectly competitive market was in a long-run equilibrium. Then, the…

A: Suppose the arugula store in a perfectly competitive market was in long-run equilibrium at point A.…

Q: In the short run, a competitive firms supply curve is

A: A perfectly competitive firm is price taker in nature, and hence faced a horizontal demand curve.

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: When will a firm neither enter or exit a competitive market?

A: In competitive market firms are free to enter and exit.

Q: In a perfectly competitive market, how do we go from a short run equilibrium to a long run…

A: A perfect competitive market is one there many firms offer homogenous product to a large group of…

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: Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What are the Characteristics of a Purely Competitive Market?

A: Characteristics of a Purely Competitive Market:   The Purely competitive market is the market…

Q: Has any particular firm in the perfectly competitive market found a way to differentiate or…

A: Perfect competition is characterized by homogeneous products which are perfect substitutes for each…

Q: Under what conditions would a firm decide to shut down in the short run but remain invested in the…

A: In a market, a firm faces different situations in short-run and long-run due to which it makes…

Q: an excess profit be earned in perfectly competitive markets in the long run. Explain.

A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…

Q: At what point would a competitive firm shut down in the short run

A: A competitive firm is a price taker, which means the firm takes the price determined by the market…

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Question 17 Referring to Figure 1 in Question 14, When price is $175, will firms enter or exit the…

A: Perfect competition is a type of market structure.

Q: Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on…

A: 1. The firm is operating at the point where the marginal revenue equals the marginal cost in the…

Q: Mary’s meat Mart in the meat market can be characterized as a perfectly competitive firm. Quantity:…

A: We have given market  price P= 20 and a firm produces output where P= MC

Q: Briefly explain the reason for why in a competitive market we expect economic profits to be zero in…

A: A competitive market, also known as perfect competition, is a kind of market where there are a large…

Q: When is it the right time when a firm will enter a competitive market?

A: A competitive market is considered as one where firms have no opportunity to deviate from market…

Q: A new korean restaurant opens in a city. People are initially cautious about eating new food items,…

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

Q: Imagine that you set up your own business. Assume that your firm produces a single product. Please…

A: The basic assumptions of a perfectly competitive market are the following: Homogeneous products in…

Q: What is the most important decision a perfectly competitive firm must make to maximize profit? what…

A: In a perfectly competitive market, there are many buyers and sellers. The good produced is…

Q: In the long run, if price is less than average cost,  there is an incentive for firms to exit the…

A: The perfect competition is the type of market structure where there are large number of firms and…

Q: Graph the demand curve for a pure competitive firm, label the graph. What is the relationship…

A: Pure or perfect competition refers to the type of market organization in which there are many buyers…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition is many sellers dealing in commodity which is same in quality and price at which…

Q: The market for corn is perfectly competitive and all firms are in long-run equilibrium currently.…

A: If corn is an inferior good, then with rise in income of consumers, they will demand less amount of…

Q: How would the introduction of legal or technical barrier to entry affect the long-run equilibrium in…

A: *Answer:

Q: In the short-run equilibrium of a perfectly competitive market with identical firms that are…

A: Perfect competition is a type of market organization in which there are many buyers and sellers of a…

Q: After the graphs: If there were 20 firms in the market, the short-run equilibrium price of copper…

A: The competitive market would result in the equilibrium when the price would be equal to the marginal…

Q: Suppose that the market for dress shirts is a perfectly competitive market. The following graph…

A: Perfectly competitive market is a type of market in which homogeneous goods, that are perfectly…

Q: A slight increase in the marginal cost of a firm definitely leads to a reduction in its output if…

A: In the oligopoly market, any change in the firm's output, cost or pricing will lead affect its…

Q: In the long run, a perfectly competitive firm can

A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…

Q: ou read in a business magazine that computer firms are reaping high profits. With the theory of…

A: (a)   Assume that the computer industry is perfectly competitive. Earning high profit which attracts…

Q: A competitive firm's supply curve is identical to its marginal cost curve. True or false? Briefly…

A: Perfectly competitive market A perfectly competitive market refers to the market in which a firm…