What is the shape of the demand curve of a firm under perfect competition

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: 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: Explain briefly why a firm under perfect competition is a price taker not a price maker?

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

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

A: In a perfectly competitive market, there will be a large number of sellers, which means that a…

Q: At what point does a firm in a perfectly competitive industry shut down? Explain with graph.

A: In a perfectly competitive industry, at the profit maximizing level of output, when the market price…

Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…

A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…

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: If Fatimah's Bee Farm is a perfectly competitive firm, the demand for Fatimah's honey has? 1. Zero…

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

Q: If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you…

A: Any manager worth his salt would aspire to maximize profits and minimize losses.  When the total…

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: Why does a purely competitive firm not charge price above the market price?  Why does it not charge…

A: In a perfect competition market structure, there exist a large number of buyers and a large number…

Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

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: The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has…

A: The profit-maximizing output level is acquired at the intersection of the marginal cost and marginal…

Q: Why do you think a firm in a perfectly competitive industry does not have market power?

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

Q: Using graph, explain when the firm maximizes its profit under perfect competition?

A: A perfect competition is a market where the firm has a control on quantity of goods to be produced…

Q: Explain the condition when an imperfectly competitive firm earns an abnormal profit with the help of…

A: Meaning of Monopoly: The term monopoly refers to the situation under which there is only an…

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: 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: Explain how a firm would maximise its profit, assuming that it faces conditions of perfect…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate

A: In the long term, all production components are interchangeable. Free entrance and departure, as…

Q: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…

A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…

Q: Perfect Competition; How can the demand curve facing the firm be horizontal if the markket demand…

A: Perfectly competition is characterized by the presence of large number of buyers and sellers. the…

Q: Look at the chart for problem #2 based on perfect competition. The profit that this firm earns when…

A: Below is the given information: TR = P × QMR = TRn-TRn-1∆QATC = TCQMC = TCn-TCn-1∆Q

Q: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. Label…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: Using an appropriate diagram, explain how a perfectly competition firm achieves profit- maximising…

A: The structure of the market where there exist many firms who sell homogenous goods to many buyers…

Q: why does a purely competitive firm not charge a price below the market price?

A: A purely competitive firm is in the market with the following assumptions: 1. Identetical products…

Q: equilibrium

A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…

Q: State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling…

A: The market structure can be divided into four based on the degree of competition and the type of…

Q: Graphically explain the profit maximization condition of a perfect competitive firm.

A: In the perfectly competitive market, a firm experiences a situation that the average revenue will be…

Q: Why is a firm in a perfectly competitive market called a price taker? How does a firm in perfect…

A: Price taker: It means a person or company accepting the prevailing prices in the market and unable…

Q: At the point of equilibrium of firm (under perfect competition)

A: To find: What happens at point of equilibrium of firm.

Q: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…

Q: Why does a purely competitive firm not charge price above the market price?

A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…

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

A: Acceptable loss means the loss which has to be accepted.This happens generally in perfectly…

Q: Illustrate and fully discuss the derivation of the demand curve for a perfectly competitive firm

A: Perfect Competition Conditions An economic examination of a company's production decisions considers…

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: What is Perfect competition?

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: . At the point of equilibrium of firm (under perfect competition)

A: To find : What happens at point of equilibrium of firm.

Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…

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

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: 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…