Why perfect competition considered as a price taker?

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: It refers to a market condition in which there are a large number of buyers and sellers that are…

Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

Q: Can a perfectly competitive firm set its own market price?

A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…

Q: Will a Perfectly competitive market display productive efficiently? Why or why not?

A: A perfectly competitive market is the one where there are a large number of buyers (consumers) or…

Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…

A: Perfect competition: Under the perfect competition market, the price is decided by the demand and…

Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

Q: In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there…

A: In the perfectly competitive market, firms are the price takers as they produce identical product…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: Strictly speaking, pure competition has never existed and probably never will. Then why study it?

A: ANS Pure competition is the form of market where there are many sellers & many buyers and the…

Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…

A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…

Q: At what output does a perfectly competitive firm maximize its profit? when marginal cost equals…

A: A perfectly competitive firm is the one where there are large number of buyers and sellers selling…

Q: Which of the following is NOT a characteristic of perfect competition?

A: To find: Which of the following is NOT a characteristic of perfect competition?

Q: If a firm's total revenue is $100, it's total cost is $130, and its total fixed cost is $40. Should…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

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: Explain why perfectly competitive firms are classified as a price taker

A: Answer - Price Taker Firm - The price taker firm are those firm who has not the ability to influence…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: If the price of a product produced by a perfectly competitive firm falls below the average total…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.

A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…

Q: At what point would a competitive firm shut down in the short run

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

Q: the perfectly competitive market, the average total cost of the small business owner will be: A)2 B)…

A: Equilibrium under perfect competition is at price = MC level MC insects the pice at 23 units  At Q =…

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: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: When the perfectly competitive firm and industry are in long run equilibrium, then D - MP - SAC -LAC

A: To find : In perfect competition firma and industry are in long run equilibrium then what will be…

Q: Based on the characteristics of perfectly competitive market explain why firms in this market are…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Explain how the long run differs from the short run in pure competition.

A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…

Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

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: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…

Q: What does that mean in terms of long-run profit?

A: Perfectly Competitive Market is the market in which buyers and sellers are large in numbers and they…

Q: Graphically show how the profit-maximizing level of output is determined for the perfectly…

A: Perfect competitive firm is a price taker and can sell any quantity of commodity at the market…

Q: Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC…

A: A perfectly competitive market is one where there are large number of buyers and sellers. The good…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: Write down the assumptions of perfect competition

A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…

Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: What is Perfect competition?

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Does a competitive firm’s price equal its marginal cost in the short run?

A: A competitive firm is one that produces and sells output in the market with many sellers who offers…

Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…

A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…

Q: Question When a perfectly competitive firm is at the profit maximizing output level what will be the…

A: Perfectly competitive market: In a perfectly competitive market structure, there exists a large…

Q: In the long run, a perfectly competitive firm can

A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…

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: Assuming that the market for cigarettes is in perfect competition, what do allocative and productive…

A: In a perfectly competitive market, when both the profit-maximizing firms and the utility-maximizing…