When a market is supplied by a single firm, then state the nature of the firm and the industry the firm demand curve the market demand curve the firm’s MR
Q: You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table…
A: Average total cost (ATC) = Total costOutput Average variable cost (AVC) = Variable costOutput…
Q: Land of Many Lakes (LML) sells butter to a supermarket in New York. Since the market for butter is…
A: Perfect competition refers to the type of market organization in which there are many buyers and…
Q: In the short run , a profit -maximizing firm will produce additional units of a product as long as-…
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: npetitive market has a cost function of C=5+ q? e market demand function is Q=420-p. termine the…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q…
A: Given data: Demand: P=40-0.25QSupply: P=5+0.05QMarginal cost: -20+4Q
Q: In a perfectly competitive market, firms are earning normal profits. Firms will earn economic…
A: In a perfectly competitive market, firms are earning normal profits. Firms will earn economic…
Q: Explain the law of supply and a firm’s cost structure.
A: The law of supply states that when other things remain the same increasing price leads to increases…
Q: Suppose Adam's Apples, a small firm supplying apples in a perfectly competitive market, decides to…
A: Perfect competition is a market structure where all firms sell identical and homogeneous products.…
Q: firms are making a positive economic profit, what happens in the market in the long run? Place the…
A: We need to put the given statements in the correct order. Positive economic profits means revenues…
Q: Draw the short-run ATC, AVC, MC, MR and Demand graphs for a perfectly competitive market…
A: Formula to calculate:- Average total cost:- ATC=TCQ Average variable cost:- AVC=VCQ Marginal cost:-…
Q: Choose the correct one
A: Perfectly competitive market is defined as the market structure way there are large number of buyers…
Q: In imperfectly competitive markets a ) some competition may exist but only in price and not in…
A: Imperfect markets are such markets that do not follow rules and regulations of perfect market such…
Q: Because of increasing marginal cost, most supply curvesA) are horizontal. B) have a negative slope.…
A: The correct answer is option D The increasing marginal cost of the product shows a positive…
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: Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering…
A: Marginal cost means the cost of producing and selling additional units. In a perfectly competitive…
Q: In a competitive market, firms sell homogeneous type of products. а. Т b. F
A: Competitive Market: It is a form of market where there are large number of buyers and a large number…
Q: Table: Cherry Farm Quantity of cherries Total Cost (in pounds) S2 11 13 4 16 21 28 38 Use Table:…
A: At $5, For 100 farms,100*2=200
Q: Draw a short-run supply curve for a competitive market withidentical firms
A: ANS The supply curve shows how much quantity of output a firm supplies for a given price level. It…
Q: In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a…
A: "In a perfectly competitive market if the market price is below the minimum of the average variable…
Q: Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal…
A: A competitive market is the one where where there are numerous producers and no individual producer…
Q: In __________ market structure, the firm's are price maker
A: Firms can be either price maker i.e ( having full control over setting prices) or they can be price…
Q: In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a…
A: In a competitive market, the firm produces output where P= MC and for given price it gets the payoff…
Q: There are 200 identical firms that produce chocolate in the short run. The market demand for…
A: (a) TC = 50 + 200Q2 Differentiate TC w.r.t Q, to get the MC =>MC = dTC / dQ => MC = 400Q…
Q: The hardware industry is perfectly competitive. Currently the price of a hammer is $5 and there is a…
A: Perfect Competition: A perfectly competitive market refers to a market structure where both…
Q: Refer to the accompanying figure to answer the following questions 1) the profit maximizing price…
A: 1.) The profit is maximized where the MR= MC. In the figure above , MR= MC at price $70 and…
Q: State what market structure exists in the housing industry in the UK in the early 1900s. Illustrate…
A: Introduction: Market structure, in financial matters, alludes to how various businesses are…
Q: A perfectly competitive firm is referred to as a A price giver. B price taker. C price maker. D…
A: Perfect competition- The market having the greatest possible level of competition.
Q: Output Total Cost $5 1 $10 $12 3 $15 4 $24 $40 5 If the market price is $16, this firm will A.…
A: Total revenue and profit is shown in below table.
Q: In a competitive market, are market supply curves typically more elastic in the short run or in the…
A: Elasticity of supply refers to percentage change in quantity supplied with respect to percentage…
Q: If the price for a firm's output is greater than the minimum value of its average variable cost, but…
A: The average variable is the amount of variable cost incurred on developing a typical unit of…
Q: Julius owns 100 acres of Florida orange orchards. Currently, he and other orange farmers are…
A: Answer to the question is as follows:
Q: Suppose you own a store that sells goods for $100 each and your average total cost per unit is $95…
A: The average total cost (ATC) is the total cost incurred per unit of output produced. At the…
Q: In a perfectly competitive market: a. All goods or services in that market are similar b. The price…
A: A perfectly completive market is where several sellers and buyers are involved in the exchange of an…
Q: In a perfect market the TR and TC create a ___________________breakeven quantity whenever the MC is…
A: In the perfect competetion market, there exist a large number of buyers and sellers. They produce…
Q: Consider a perfectly competitive market where all firms produce using the same technology. The…
A: Consider the perfectly competitive market where all firms produce using the same technology. The…
Q: In the long run when a perfectly competitive firm experiences positive economic profits firms exit…
A: In perfectly competitive market, there is free entry and exit of firms.
Q: A firm sells a product in a purely competitive market . The marginal cost of the product at the…
A: The firm produces various goods and services. The competitive market would result in many buyers and…
Q: The supply curve of a competitive firm is the postion of marginal cost that is
A: In a competitive firm, the demand curve is horizontal because the market sells identical goods so…
Q: A firm in a perfectly competitive market a. can increase its supply to lower the market price. b.…
A: In a perfectly competitive market, there are many buyers and sellers. There are no barriers to entry…
Q: Explain the effects firms entering or exiting have on the price and supply of a market. (assume the…
A: A perfectly competitive market is a type of market structure in which a large number of small firms…
Q: Determine a firm’s profit-maximizing decision in the short run.
A: Profit-maximization is a rational producer's objective under which the producing agent attempts to…
Q: *** Babolat, Sony, and other smart racket producers are attempting to maximize economic profit…
A: Under monopolistic competition, there are a large number of buyers and products are differentiated.…
Q: The table below shows the total variable costs faced by Arlo's Eye Care for different quantities of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: In a perfectly competitive market A) only producers are price makers. B) all producers and…
A: Perfect competition is said to exist when there is a large number of buyers and sellers of a…
Q: We assume perfect competition on the market for Mobil phones. The demand and supply curve is given…
A: Demand equation: P = 7000 - 50X Supply equation: P = -5000 + 100X Equilibrium in the market occurs…
Q: Refer to the accompanying graph to answer the next question. Price and Cost MC ATC $8 $5 Quantity In…
A: No completely cutthroat firm acting alone can influence the market cost. Notwithstanding, the blend…
When a market is supplied by a single firm, then state the nature of
- the firm and the industry
- the firm
demand curve - the market demand curve
- the firm’s MR
Step by step
Solved in 2 steps
- Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?GIVEN INFORMATION: Think about Anteaterville's highly competitive smoothie market. Q is the quantity (measured in the number of smoothies) and p is the price, and the supply of smoothies is given by Q = 200p and the demand for smoothies is given by Q = 1200p - 100p (measured in dollars). The equilibrium quantity in this market is 800 smoothies. The equilibrium price in this market is $ 4 per smoothie. (Please enter only numbers in the boxes, and round to the nearest whole number if necessary.) PLEASE SOLVE: Remember the perfectly competitive smoothie market from the previous question? At the competitive equilibrium you derived in previous question (and assuming there are no market failures in the smoothie market), the producer surplus in the smoothie market is $______ , the consumer surplus is $______ , the total surplus is $______ , and the deadweight loss is $________ . (Please enter only numbers in the boxes, and round to the nearest whole number if necessary.)Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit& Vegetable Market in Al-Aweer, faces a demand curve that is simply a horizontalline at themarket equilibrium price. In other words, competitive sellers, in this market, face perfectlyelastic demand in the short run.”
- Economics PRICE ошо K Figure 16-8 B J H M L QUANTITY MC ATC Demand MR Refer to Figure 16-8. Which of the following best describes the profit-maximizing outcome for the firm depicted here? a. This firm is incurring a short-run loss, but will earn zero profit in the long run. b. This firm is in long run equilibrium and will continue to earn zero profit. c. This firm is earning a short-run profit, but will earn zero profit in the long run. d. This firm is earning zero profit in the short run, but will earn a positive profit in the long run.The accompanying graphs represent the soy bean market, a competitive market and Roy's Soys, an individual firm in the market for soy beans. The soy bean market graph depicts the short-run supply (SRS), long-run supply (LRS), and demand (D). The graph for Roy's Soys represents marginal consts (MC) and average costgs (AC). The market and the firm are currently in long-run equilibrium at point A. a. Demonstrate what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight-loss supplement. On the market graph, you will shift a curve (or curves). On the firm's graph, use "Price 2" to draw a new price line for the firm. On both graphs, indicate the new equilibrium points with the points labeled B. b. Now, demonstrate the changes that get both graphs back to long run equilibrium. Use shift(s) for the market and "Price 3" for the firm. Indicate the new long-run equilibrium with the green points labeled C.Every House in a small town has a well that provides water at no cost. However, if the town wants more than 10,000 gallons a day, it has to buy extra water from firms located outside of the town. The town currently consumes 9,000 gallons per day. a. Draw a linear demand curve b. The firm's supply curve is linear and starts at the origin. Draw the market supply curve, which includes the supply from the town's well. c. Show the equilibrium. What is the equilibrium quantity? What is the equilibrium price? Explain Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=106-7P. Market Supply is given by P=5+2Q. What is market QUANTITY? Enter a number only. Remember, fractions of goods are possible.Consider the information of Firm C on the attached figure and answer the following: Calculate TVC and Ceteris paribus, if the price falls below_________, Firm C will have to shut down and exit the market Ceteris paribus, Firm C will make a normal profit at the price of________ Firm C achieves an allocative efficient level of output by producing_______ units of output.Be sure to label the graphs. Suppose in the competitive market for a good known as “Tovars” that there are 5,000 firms. Assuming each firm is at a point where P=ATC. Suddenly, a huge number of entrepreneurs enters the market so the number of firms increases by 1,000. a. Please draw a graph showing the short run effect. Please label the price and quantities initially as P1, q1, Q1 and the short run price and quantities as P2, q2, Q2 b. On the graph in a, please show the long run effect. Please label the long run price and quantities as P3, q3, Q3. Relative to the initial equilibrium (before the entrance of 1,000 firms), What happens to the P? What happens to the q? What happens to the Q?
- Market Equilibrium A retail chain will buy 800 televisions if the price is $350 each and 1200 if the priceis $300. A wholesaler will supply 700 of these televisions at $280 each and 1400 at $385 each. Assumingthat the supply and demand functions are linear, findthe market equilibrium point and explain what itmeans.Price elasticity of supply in the short run and long run The following graph shows the long-run supply curve for pistachios. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for pistachios. (Note: Place the points of the line either on O and T or on O and Y.) PRICE (Dollars per pound) 48 40 32 24 8 0 0 Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of pistachios) 12 Short-Run Supply Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.“That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the shortrun supply curve for the firm.” Explain using a graph and words.
