When do firms decide to (i) stay in the market, (ii) shutdown the firm's operations, and (iii) exit the market?

Q: Assume perfect competition takes place in the market for hotel rooms. The the current market…

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

Q: Why are perfectly competitive markets considered economically efficient?

A: There are several forms of the market that exists in the real world out of which perfect competition…

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: In class we said that the firms like firm X in perfect competition are price takers, it implies that…

A: Perfect competition is the one of structure of market in which many numbers ofbuyers and sellers…

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: 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: Distinguish the difference between the market demand curve and the demand curve that a particular…

A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…

Q: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

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: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

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: The following graph shows the output for Pat, a profit-maximizing corn farmer.   1. Suppose the corn…

A: A firm’s short run supply function is the increasing part of its short run marginal cost curve above…

Q: Why are sellers in perfect competition unable to increase prices?

A: Perfect competition is a market structure characterized by large number of firms selling homogenous…

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: You observed that in the long run, a profit-maximizing firm chose to exit a market. What can you…

A: There is a difference between the cost function in the short-run and in the long-run due to which…

Q: When will a firm neither enter or exit a competitive market?

A: In competitive market firms are free to enter and exit.

Q: Explain how economics make profit or loss when firms are perfectly competitive.

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

Q: What kind of business is a water refilling station? What problems are solved with the help of a…

A: 1) A water refilling station is a business where the supplier provides safe, and drinkable water to…

Q: equilibrium

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

Q: Firms always lose money in a long-run industry equilibrium, true or false?

A: Firms always lose money in a long-run industry equilibrium, true or false.

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: Question 17 Referring to Figure 1 in Question 14, When price is $175, will firms enter or exit the…

A: Perfect competition is a type of market structure.

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: If the firms are earning abnormal profit how will the number of firms in industry change?

A: According to the given question In Simple words we can say that the abnormal profits are the profits…

Q: How equilibrium price is determined under perfect competition?

A: Under perfect competition, both producers and consumers are price takers.

Q: Briefly explain the reason for why in a competitive market we expect economic profits to be zero in…

A: A competitive market, also known as perfect competition, is a kind of market where there are a large…

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: The Nintari Company produces video-game-playing machines and a second firm, Necsega, owns exclusive…

A: Imperfectly Competitive Market An imperfect competition market is a situation where there is a…

Q: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

A:

Q: Kali is a dot-com entrepreneur who has established a Web site at which people can design and buy a…

A: Given  Kali has to pay $100 for an internet connection and 10 per pair of sunglasses So the total…

Q: What are the main characteristics of a competitivemarket?

A: A perfectly competitive market is the one, where there are a large number of firms selling…

Q: The graph above illustrates the electricity market. Consider market competition between firms where…

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

Q: Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and…

A: We will use concepts such as Profit maximisation under perfect competition market structure.

Q: rcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2…

A: * Answer :-

Q: Which of the following would not help a firm to improve its competitive position?

A: Market Positioning:- Competitive positioning is a term used to describe how well a marketing people…

Q: Suppose that a local government is considering placing a tax on the rental of rooms on Airbnb.…

A: Only the first part will be answered here as no question number is mentioned.

Q: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

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…