What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit. Which do firms maximize?

Q: Explain how the long-run equilibrium in a perfectly competitive industry achieves 'allocative…

A: When profit-maximizing companies in perfectly competitive markets combine with utility-maximizing…

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: 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: When will a firm enter a competitive market?

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

Q: 2b) If the price of the product in a perfectly competitive market increases what happens to the…

A: The 'available market,' or that of all the individuals in the area, is referred to as a market.…

Q: a) What is meant by zero economic profit? (b) What are the conditions that need to be satisfied for…

A: Zero Economic Profit refers to no profit or no loss. It means that firm breakevens. In case of Zero…

Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm?   Draw a graph and…

A: Perfect competition refers to the type of market organization in which there are many buyers and…

Q: What are the characteristics of a perfectively competitive market?

A: There are different market structures with different characteristics.

Q: Why is it important for managers to understand the mechanics of supply and demand both in the short…

A: The terms "long run" and "short run" do not relate to a specific time period like three months or…

Q: Describe how a firm in perfect competition makes profit-maximizing decisions

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

Q: Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and…

A: A perfectly competitive market structure is where many firms function but none of them are large…

Q: Explain why a perfectly competitive firm earns zero economic profits in the long run.

A: In an economy, different types of markets exist to make an exchange of different types of products.…

Q: The connection between marginal revenue and price depends on a business's competitive environment.…

A: Under perfect competition, there exists a large number of buyers and sellers. Each firm sells…

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?

A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…

Q: Family Mart like inner city grocery stores, sometimes exist even though they do not earn economic…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

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: Explain why economic profits in all perfectly competitive markets will tend toward zero in the long…

A: A perfectly competitive market is a market consist of large number of buyers and sellers, selling…

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: explain why is the long run market supply curve horizontal in long run in perfect competitive…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Why does perfect competitive market need to be maintained?

A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…

Q: Explain the implications of large number of buyers and sellers in a perfectly competitive market.

A: In a perfectly competitive market structure there are large number of buyers and sellers and all the…

Q: Are condominiums considered imperfect competition or perfect competition in the market?

A: Market structures can be classified into four major categories. The following states the market…

Q: Explain why a perfectly competitive firm would or would not advertise.

A: Perfect competition refers to the type of market organization in which there are many buyers and…

Q: Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to…

A: When perfectly competitive markets combine with utility-maximizing buyers, the resulting quantity of…

Q: What are the five features of a perfect market competitive?

A: There are many market structures in the economy. Some of them are, perfect competition, monopoly,…

Q: What are the requirements for a perfect competition market?

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: you've been learning about what makes a market perfectly competitive, how a firm in a perfectly…

A: Perfectly competitive market: In this type of market there are a huge number of buyers and sellers…

Q: Productive efficiency and allocative efficiency are two concepts achieved in the long run in a…

A: Perfect competition is a competition where the firms in the market are price takers and have no…

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: Can you think of a product that meets at least most of the criteria required for a perfectly…

A: Perfectly competitive market refers to the market which has been characterized by the presence of…

Q: Predict and explain the long run equilibrium of a firm operating in a perfectly competitive market?

A: The structure of the market where there are a large number of buyers and sellers selling homogenous…

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: A single firm in a perfectly competitive market is relatively small compared to the rest of the…

A: In the ‘perfect competition(PC)’ all firms sell ‘identical products’ that are homogeneous. Here all…

Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC 10…

A: Profit is maximized at a point where MR is equal to MC.

Q: Assuming that the market for cigarettes is in perfect competition, what do allocative and productive…

A: In a perfectly competitive market, when both the profit-maximizing firms and the utility-maximizing…

Q: -run equilibrium in a perfectly competitive market, firms earn positive economic profits.   Is…

A: A perfect competition is where there is free market entry for the firms. If the firm earns profits…

Q: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…

Q: Describe a perfectly competitive market structure and its characteristics?

A: Perfectly competitive market structure is the market structure in which,there is no or negligible…