Why are firms called price takers in a perfectly competitive market? Why do different firms produce different quantities despite having the same price and MR curve in perfect competition? Explain.

Q: Suppose you are the production manager of a small perfectly competitive firm making a single…

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Q: Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken…

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Q: Consider the market for wheat which is a perfectly competitive market.  Is the market demand curve…

A: The term "perfect competition" refers to an ideal market arrangement. In a perfect competition…

Q: MC Price ATC AVC 10 15 Quantity

A: Shut down point is the point where a firm is unable to recover its variable costs in the short run.…

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Q: Illustrate and explain how the short-run supply curve of a price-taking firm is determined.

A: In a price taking firm, the demand curve is a straight line parallel to x axis which is equal to…

Q: Explain in detail why it would be okay for you, if you were a business in a purely competitive…

A: After analyzing different types of market forms, it can be seen that the widespread form of market…

Q: 2b) If the price of the product in a perfectly competitive market increases what happens to the…

A: The 'available market,' or that of all the individuals in the area, is referred to as a market.…

Q: In a perfectly competitive market, each firm has the cost function: q 2+10q+100. The price in the…

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Q: the economic model of perfectly competitive market is very unrealistic because it predicts that…

A: Perfectly competitive market is the place where new entrants have the opportunity to operate their…

Q: Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and…

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

Q: Suppose a firm in a perfectly competitive industry develops a manufacturing innovation that lower…

A: The perfect competition refers to a type of market structure which is characterized by a large…

Q: Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell…

A: As per the first table, the firm should not operate at any level of production because it is loss…

Q: A perfectly competitive firm is currently maximizing profits. The market for its product is in a…

A: Perfect competition market is the form of market structure where large numbers of buyers and sellers…

Q: Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and…

A: A perfectly competitive market structure is where many firms function but none of them are large…

Q: You are a manager in a perfectly competitive market. The price in your market is $14. Your total…

A: Profits are the excess of revenue receipts earned by the firms over the costs incurred in the…

Q: A perfectly competitive firm, with MC=q operates in a market character,zed by the following market…

A: Demand: Q=20000-100P Supply: Q=100P

Q: A firm in a perfectly competitive market uses only workers to produce output. The relationship…

A: Answer: Given, Wages (variable cost) = $100 per worker Fixed cost = $500 (a). The formula to be…

Q: A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s…

A: In a perfectly competitive market, the short run supply curve is the marginal cost (MC) curve at and…

Q: Suppose a perfectly competitive market is in equilibrium and demand for the product increases O in…

A: Perfect competition is a market system in which several sellers sell the same product without any…

Q: You are operating in a perfect market are you are price taker? Why?

A: The perfect competitive market is a type of market, which is characterized by a large number of…

Q: The long -run supply curve for gem diamonds is positively sloped because increases in diamond output…

A: In the perfect competition,products are identical. If people no longer want to buy diamond rings…

Q: What assumptions are necessary for a market to be perfectly competitive? Explain why each of these…

A: ANSWER   When the consideration of the all questions had been analysed and there had been that…

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

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: If Conagra is a competitive firm, it will never operate at an output where its average total cost…

A: Perfect competitive firm is the firm which work in the industry where number of firms are working…

Q: Refer to the table to the right which shows the short - run cost data of a perfectly competitive…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: explain why is the long run market supply curve horizontal in long run in perfect competitive…

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

Q: Why is it said that they are "price takers" and unable to influence the market price? If firms in…

A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…

Q: How does fixed cost affect marginal cost? Do fixed costs affect perfectly competitive firm’s output…

A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…

Q: Fill in the following table! Assume the firm operates in a perfectly competitive market and can sell…

A: A perfectly competitive firm earns maximum profit or minimize loss by producing at level of output…

Q: The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely)…

A: In perfectly competitive market, price is constant and equal to marginal revenue. At profit…

Q: Graphically show the market and firm graphs for the perfectly competitive long run market when firms…

A: Initial long-run equilibrium in the market and firm. It is given that it is a perfectly competitive…

Q: What is the main feature of a perfect competitive market.

A: Perfect competitive market The term "perfectly competitive market" refers to a scenario in which a…

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: Explain the profit and loss possibilities of a price taker firm and graphically draw the supply…

A: Long-run is the time period where all the factors of production become variable.

Q: Total Cost and Output, which describes Sergei's total costs for his perfectly competitive…

A: A perfectly competitive firm is a price taker as it accepts the market price as given.

Q: In a perfectly competitive market, the price of the good or service is determined by O the…

A: In a competitive equilibrium each buyer or seller have very less part of the entire market. So, they…

Q: Draw the two graphs and explain the market conditions at $50, $60 in the short run & the return to…

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Q: Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and…

A: Perfect competition: It refers to the market in which the firms are the price taker and the buyers…

Q: True or False: The industry is in a long-run equilibrium.

A: In the perfectly competitive market structure, every firm in the market produces identical goods and…

Q: Suppose Sophia sells flowers in a perfectly competitive market and always maximizes profit. (a)…

A: (a)Firms under perfect competition cannot influence price at which goods are sold in market. Thus,…

Q: You are a business manager working for a firm in a purely competitive market and you just hired a…

A: a) The profit of a perfectly competitive firm is when its MC = price. Also, this firm is a price…

Q: Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken…

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

Q: -run equilibrium in a perfectly competitive market, firms earn positive economic profits.   Is…

A: A perfect competition is where there is free market entry for the firms. If the firm earns profits…

Q: In long-run equilibrium in a perfectly competitive market, which of the following is true? (a)…

A: In long run equilibrium in a perfectly competitive market, long run occurs when average cost is same…