Answered: What is the competitive structure of…

What is the competitive structure of the firms listed below and why? A restaurant in a small, isolated community. It’s the only local restaurant. People drive miles away to eat here.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter9: Competition And Monopolies

Section: Chapter Questions

Problem 11AA

See similar textbooks

Related questions

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

A: A perfectly competitive firm is price taker. The market price it faces is constant. This implies…

Q: what is difference between perfect and pure competition? Highlight the assumptions of perfect…

A: Pure Competition is a subpart of perfect competition Pure competition is a market situation where…

Q: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. How can you…

A: Small “Mom and Pop" firms sometimes exist even though they do not earn economic profits. The…

Q: The, competitive firm maximizes its profit by operating where:

A: Under perfect competition, individual firms have no control over price. Therefore, the firm’s…

Q: The Watts Brewing Company owns valuable water rights that allow it to produce better beer than…

A: Economic profit: The difference between the sales revenue and all input cost plus the opportunity…

Q: What are the assumptions of perfect competition? What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: was the west fraser timber company always been classified as perfectly competitive market in the…

A: When talking about the competitiveness of a firm, it can be said that it is determined by the market…

Q: Using diagrams, explain why a perfect competition firm can only make a normal profit in the long…

A: The perfect competition is the Market where there are large number of buyers and sellers who deals…

Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…

A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…

Q: What are the major characteristics of a firm competing under conditions of perfect competition?

A: The perfect competition is a market structure which is characterized by the presence of a large…

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: The costs of production include both the fixed costs as well as the variable costs. The fixed costs…

Q: Which of the following is NOT a characteristic of perfect competition?

A: To find: Which of the following is NOT a characteristic of perfect competition?

Q: What type of product by individual firms (none, total, some etc) are in a perfect competition and…

A: Perfect competition is a market structure in which all producers and consumers have complete and…

Q: A perfectly competitive firm showing a profit

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

Q: the shape of the SR supply curve of a perfectly competitive firm with a diagram.

A: the shape of the SR supply curve of a perfectly competitive firm is

Q: What is the shape of the demand curve faced by a firm under perfect competition?

A: Perfect competition, according to economic theory, occurs when all companies sell identical items,…

Q: What type of organization is appropriate in the competitive business environment?Please explain with…

A: Competitive business environment:- A competitive environment can be explained as a framework…

Q: What is the competitive structure of the firms listed below and why? A retail store selling…

A: Answer: This is an example of monopolistically competitive market structure.

Q: If all assumptions of perfect competition hold, why would firms in such an industry have little…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…

A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…

Q: There is no incentives to innovate in a perfect competition market. Do you agree? Explain.

A: When talking about perfectly competitive market, it is the place with a large number of buyers and…

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

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: Agriculture in India is mostly characterized by Perfectly Competitive Market! What are the…

A: Perfectly competitive market structure is the market structure in which there are large number of…

Q: Short Answer Questions (SAQS): a) Do you think there is perfect competition in Pakistan markets? Why…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Write a short note on perfectly competitive market structure.

A: # Broadly there are 4 market structures namely perfect Competition market, monopoly market,…

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: Filling for bankruptcy does not mean that the firms have to shut down. In the US the bankruptcy laws…

Q: Can you give examples of companies with perfect competition?

A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…

Q: Write down some examples of industries that are (close to) perfectly competitive. What attributes do…

A: Perfect competition is a kind of market in which a large number of suppliers of a homogenous…

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: Explain why in the long run perfect competitive firms can only break even.

A: Perfect competition refers to the market where homogeneous products are produced. An individual firm…

Q: Discuss where does the shutdown being and why? What does the company has to do to get back to…

A: The answer is given below

Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…

A: Perfect competition refers to a market situation in which there are many buyers and sellers in the…

Q: How do the entry and exit of firms in a purely competitive industry affect resource flows and…

A: Answer - Need to find - How do the entry and exit of firms in a purely competitive industry affect…

Q: Define a perfect competition market structure?

A: Market structure defines the features of a market in which the buyers and sellers interact to sell…

Q: Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making…

A: In a circumstance of amazing contest, regardless of whether an organization acquires benefits or…

Q: In a perfectly competitive market, firms:

A: When there are large number of buyers and sellers in the market striving for a product then there…

Q: What is the non price behavior of a perfect competition market structure. (Include examples)

A: Non-price competition in the perfect competition involves the product, unique selling point,…

Q: the assumptions of perfect competition?

A: To find : Assumption of perfect competition.

Q: What is Perfect competition? (50 words only)

A: A market arrangement in which numerous enterprises provide a homogeneous product is known as perfect…

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…

Question

What is the competitive structure of the firms listed below and why?

A restaurant in a small, isolated community. It’s the only local restaurant. People drive miles away to eat here.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
Define a perfect competition market structure?
What are the conditions that distinguish perfect competition from other market structures?
Consider the following two industries the rice industry and labtop industry. Which industry would fit best into the category of perfect competition and why? Make sure you relate the most relevant economic concepts and theory to justify arguments.
The salmon fishery on Vancouver Island has historically been one of the world’s richest. Over the past few years, poor returns of salmon to the island and competition from farm-raised salmon have reduced the profit realized by the fishermen. One response to lower revenues has been for fishermen to use family members instead of hiring crew “in order to reduce their costs.” What do you think about this business strategy? Will employing relatives really keep profits from falling? Under what conditions will this a good strategy?
Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down? Think of recent examples.
Many firms in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
What is the Imperfect competition that refers to any form of market structure other than perfect competition?
Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?
Can you give examples of companies with perfect competition?
In recent years in the brewing industry, a couple of large firms that have historically had most of the beer sales (Anheuser-Busch and Miller) have faced competition from many small “micro” brands. In terms of the continuum of competition, how would you explain this change?