Q: What is the goal of a firm?
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: The competitive firm is
A: In a competitive market, a dynamic business is one that has no power over evolving market forces.
Q: Based on the given graph: a. If this firm profit-maximizes, how much output will it produce and…
A: Given;
Q: Under what circumstances might you expect the demand curve of the firm to be a. Vertical? b.…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: Draw a two panel Diagram depicting a firm in a competitive market making a profit on the Left hand…
A: The perfectly competitive market is the market structure where a large number of firms compete in…
Q: What two lines determine whether a firm is making positive or negative or zero profits?
A: Introduction The perfect competitive firm only needs to decide on one thing: how much to make. To…
Q: How much profit or loss does the firm make at the selected output level?
A: The additional cost incurred in the manufacturing of one more unit of a good or service is known as…
Q: Why can't firms enter the market in the short-run?
A: There are various types of market structures which have different characteristics of the number of…
Q: What are the determinants of the relationship between economies of scale and market structure.
A: We are going to discuss the definition of economies of scale and market structure to answer this…
Q: Suppose that the market for black sweaters is a competitive market. The following graph shows the…
A: Profit maximization occurs at the point where the marginal revenue and marginal cost are equal.…
Q: Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a…
A: Blank 1 - Less The report will scare the consumer about the bad health so the consumer will start…
Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…
A: In a market with perfect competition, every manufacturer offers the same products or services. There…
Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…
A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…
Q: Under what conditions will a firm exit a market? Explain theoretically and graphically.
A: Short‐run supply curve- The short‐run supply curve of the firm is the portion of its marginal cost…
Q: Using graph, explain when the firm in a competitive market is in equilibrium?
A: A market is a place where the buyers and the sellers interact with each other and the exchange of…
Q: competitive market
A: A. If the price = AC = MC, then the market is competitive and incurring economic loss.
Q: What are the options available to a firm when the market demand exceeds capacity?
A: Here's a set of features that assist companies in proactively addressing excess demand and…
Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…
A: Given: Short-run market price per sweater=$ 45
Q: c. What is this firm's supply curve? Explain. С.
A: Hey. Thank you for the question. As you have asked the solution of part c), I am answering it below
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: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…
A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…
Q: equilibrium
A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: The equilibrium is established where the P=MC.
Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…
A: The provided graph is:
Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…
A: Perfect competition is a market structure where are large numbers of buyers and sellers. The sellers…
Q: ransaction costs and why are they important to why firms exist? (hint: Coase theory)
A: Coase theorem states that in the presence of well-defined property rights, the parties involved in a…
Q: At the beginning of the year 2021, three friends, Ebo, Michael and Joseph decided to set up a…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: How do firms in a competitive market work?
A: Perfect competition is a market where there are lage number of seller and buyers of identical and…
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: 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: Suppose that the market for black sweaters is a competitive market. The following graph shows the…
A: Answer: According to the above figure if the market price is $15 the equilibrium occurs at point E.…
Q: What is the firms profit or loss?
A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…
Q: Do you think firms really try to maximize profits? Do firms (especially small ones) know what prices…
A: Economist generally assume that firms act as profit maximisers. Economists don’t think there’s…
Q: What are transaction costs? How do transaction costs affect the boundaries of a firm?
A: The cost incurred during the process of buying and selling goods and services is referred to as…
Q: How is long run equilibrium achieved
A: The firms produce goods and services using different inputs and result in the maximisation of the…
Q: 50 45 Profit or Loss 40 35 ATC 15 AVC 10 MC 5 4 10 12 14 16 18 20 QUANTITY (Thousands of sweaters)…
A: In perfect competition, eqm quantity is found by the intersection of MC(marginal cost) and P(price)…
Q: What is Product Expansion?
A: Product Expansion -It is the expansion of economic activity as well as the production levels from…
Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
A: Answer - In the long run where the every input can vary and as in the long run where firms can make…
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: Consider the price-taker market for sports jackets. The following graph shows the marginal cost…
A: in short run and long run the , the firm should continue the business of not it depends on the…
Q: Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of…
A:
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: 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…
What do you mean by the equilibrium of a firm?
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