Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and demand faced by a firm in such a market coincide? Explain.

Q: Determine and explain the profit maximization output of a perfectly competitive firm.

A: Perfect competition is a competition where both buyers and sellers have perfect information about a…

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

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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: If a competitive firm maximizes short-run profits by producing some quantity of output, which of the…

A: Profits are the end result for which business organizations work. Profit is the main and most…

Q: Which of the following is NOT a characteristic of a perfectly competitive market? O Goods offered…

A: The characteristics of the Perfectly competitive market are:  1) The firms are the price since there…

Q: Firms in a perfectly competitive market are said to be “price takers”—that is, once the market…

A: In perfect competition, there are a large number of buyers and sellers dealing with homogeneous…

Q: Malaysia is the world's largest producer of rubber gloves. The Rubber gloves industry is perceived…

A: Short run refers to a time period in  which at least one factor of production is fixed, while other…

Q: A perfectly competitive market is in a long-run equilibrium. Prices of variable inputs for the…

A: A competitive firm is most efficient among other market structures.  The assumptions of perfect…

Q: Consider the perfectly competitive market for tofu. Many people use tofu as a substitute for meat.…

A: A perfect market, also known as an atomistic market in economics, is defined by multiple idealizing…

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

A: If CEQ announces that the chemical in tuna helps to prevent from spreading, then the consumer will…

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: ndependent trucking is an industry that can be considered perfectly competitive. Draw a graph…

A: The equilibrium price and quantity of perfectly competitive industry and individual firm is…

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

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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: Assume that you have a representative farm producing wheat in a perfectly competitive market. The…

A: Firms, consumers, and investors get international products, services, and assets on the exchange…

Q: Explain why a perfectly competitive firm earns zero economic profits in the long run.

A: In an economy, different types of markets exist to make an exchange of different types of products.…

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: 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: How to find the inverse demand equation faced by a perfectly competitive market?

A: In perfect competition, eqm. qty is determined by the intersection of MC(marginal cost) and…

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: In a perfectly competitive market, what happens to a firm's profit-maximizing level of output if the…

A: Given  In a perfectly competitive market, what happens to a firm's profit-maximizing level of output…

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: We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the…

A: In a perfect competitive market, there are large number buyers and sellers selling identical goods…

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: 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: Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3…

A: Perfect competition: Under this market, the price prevails in the market is determined by the market…

Q: The following graph shows the market demand for wheat. Use the orange points (square symbol) to plot…

A: Answer: In the short run, the supply curve is the rising part of the marginal cost (MC) curve above…

Q: In a perfectly competitive market, what is the marginal revenue curve

A: Meaning of Perfectly Competitive Market: The perfectly competitive market exists when there is a…

Q: Why are firms called price takers in a perfectly competitive market? Why do different firms produce…

A: A perfectly competitive firm is known as a price taker, because the pressure of competing firms…

Q: n the short run, in order to maximize profit, a firm in a perfectly competitive market will operate…

A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…

Q: why does price equal marginal revenue for the perfectly competitive firm? what is the relationship…

A: Perfect competition refers to the type of market organization in which there are many buyers and…

Q: Fill in the missing words: 1. If economic profits are being made in a perfectly competitive market,…

A: if firms in a perfectly competitive market are acquiring negative economic profits, more firms will…

Q: Imagine that you set up your own business. Assume that your firm produces a single product. Please…

A: The basic assumptions of a perfectly competitive market are the following: Homogeneous products in…

Q: What is the most important decision a perfectly competitive firm must make to maximize profit? what…

A: In a perfectly competitive market, there are many buyers and sellers. The good produced is…

Q: Firms in a perfectly competitive market are said to be "price takers" - that is, once the market…

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

Q: Consider the perfectly competitive market for steel, which is in long-run equilibrium. Now the…

A: Perfectly competitive market- It is a market where there are large numbers of buyers and sellers and…

Q: Refer to the above graph for a purely competitive firm in the short run. What minimum output level…

A: In order to answer this question, it is imperative to understand the concepts of breakeven and…

Q: Which of the following is not a characteristic of a perfectly competitive market?   a.  There is a…

A: Perfectly Competitive Market: In terms of economics, Perfect competition is a form of market…

Q: Suppose that the perfectly competitive turkey industry is in long-run equilibrium at a price of $3…

A: Answer: (1). Less (2). producing less quantity of turkey and running at a loss (or earning a…

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: A single firm in a perfectly competitive market is relatively small compared to the rest of the…

A: In the ‘perfect competition(PC)’ all firms sell ‘identical products’ that are homogeneous. Here all…

Q: Consider the perfectly competitive market for pineapples, which is in long-run equilibrium. Now…

A: Pure or perfect competition is a hypothetical market structure in which the accompanying models are…

Q: Which of the following is a key assumption of a perfectly competitive market? Firms have influence…

A: This model assumes that all goods are similar, rival, and excludable, that all buyers and sellers…

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: In the above figure, The cost curves of a typical perfectly competitive curve are show. What will…

A: In a competitive firm due to free entry and exit the firm earns normal profit in the long run.

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

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Q: Explain the three possible profit maximizing positions of perfectly competitive firms in the…

A: The various forms of market structure include perfect competition, oligopoly, monopoly, and…