When does z profit-maximizing competitive firm decide to shut down? When does it decide to exit the market?

Q: explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits…

A: The average total cost (ATC) refers to the cost of a single unit, includes the average variable cost…

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: 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: 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: 3. Consider the following diagram: ATC MC ive AVC P-D-MR Quartity Would a perfectly competitive firm…

A: 3.In the perfect competitive market, the firm will produce the level of output at where the price…

Q: Given the following information, state whether the perfectly competitive firm should shut down or…

A: The firm's production decision in short-run is based only on the variable cost and not fixed cost.…

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

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

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: Discuss the long-run benefits of running a firm in perfect competition.

A:

Q: R MC AC E Po P = MR = AR C Qo Quantity Revenue and cost

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

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: 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: 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: he table below shows the cost information for a firm in a perfectly competitive industry. What…

A: Shutdown rule enables us to take decisions regarding shutting down of the firm's production in short…

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: Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing…

A: For Perfect competition, we know that P = MC and P = MR (since the price remains the same…

Q: Hampton Inc. produces soap in a purely competitive industry. The table below is Hampton Inc.'s cost…

A: In the pure competitive market reach firm has very small share of whole market as a result a typical…

Q: Explain why a perfectly competitive firm won’t advertise.

A: In perfect competition, there are a large number of buyers and sellers where the latter do not have…

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: 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: How does a competitive firm determines its profit-maximising level of output? Explain. When does a…

A: The competitive market is the type of market structure where there are large number of buyers and…

Q: The table below shows cost and revenue information for Choco Lovers, a perfectly competitive firm…

A: MC(n)=(TC(n)-TC(p))(n-p) MC(n)=marginal cost of n th unitTC(n)=Total cost of n units of…

Q: The following attached graph represents the situation of Sindbad’s caps, a firm selling caps in the…

A: In a competitive market, the firm will earn more and more profits when the revenue that is marginal…

Q: Curt makes specialty pizzas. His total fixed cost is $44 a day, and his average variable cost is $2…

A: The sum of all the costs incurred by a firm for the production of a commodity is the total cost. It…

Q: how does firm maximize its profit in perfect competition? discuss in detail with help of graph. also…

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

Q: 2. List the features that characterize a perfect competitive market.

A: 2. Feature of perfect competition market:- * Large number of buyers and sellers. * homogeneous/…

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: The cost data in the following table are for Marshall's Meats, a perfectly competitive firm. Round…

A: d. If the market price is $55, the quantity that Marshall's meats produce is 4 units. Total revenue…

Q: e short run?

A: Explanation: The average variable price is that the variable price per unit of output created. it's…

Q: Question 7 In the situation depicted by the following diagram: AC AIC MIC AVC The firm will make a…

A: Average variable cost is the amount of variable cost spent on making a typical unit of commodity. It…

Q: Classify the statements based on whether each describes a perfectly (purely) competitive firm…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…

A: Below,  P price Q quantity  C/TC cost/total cost TR total revenue  MR marginal revenue  MC marginal…

Q: Sally owns and operates a pizza house. The diagram shows the cost and revenue curves for the pizza…

A: Total profit is the difference between total revenue and total cost.  Profit maximization is the…

Q: Explain perfect competition in detailed explain profit maximization graphically

A: Perfect competition is a type of market which is characterized by a large number of buyers and…

Q: What type of market competitive environment Amazon operates in?

A: amazon is an online dealer and offers a fast home delivery. Most of the people have a confusion in…

Q: Complete the table above. What is the profit-maximizing output for this firm? a) 3 units b) 4 units…

A: Costs Revenues Quantity Produced Total Cost $ Marginal Cost Quantity Produced Price $ Total…

Q: What is the shutdown decision of the firm? How should a firm decide whether to continue business or…

A: For a perfectly competitive company, where the total revenue of the company, i.e. the product of its…

Q: 1. a. Given the following information, state whether the perfectly competitive firm will shut down…

A: The characteristics of perfectly competitive market structure are as follows: (i) There are large…

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

A: The term "perfect competition" refers to a market structure that exists only in theory. There are no…

Q: Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as…

A: Given: Annual Revenue=$10,000 Earning as a farmer=$2000 per year Expenses for running…

Q: Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling…

A: i) We need to add the AFC and the AVC to get ATC. This is because TC TVC + TFC so TC/Q should…

Q: How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a…

A: A competitive firm determines its profit maximizing level of output when P= MR= MC  When the…

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: The following table shows information for Hayek’s Maps, a perfectly competitive firm.   a. Complete…

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only one question…

Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.