Would a perfectly competitive firm produce if price were less than the minimum level of average variable cost? Why?

Q: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

A: A perfectly-competitive(PC) market is one where there are infinite number of buyers & sellers…

Q: Why is the marginal revenue of a perfectly competitive firm equal to the market price?

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: How would you describe the demand curve for the purely competitive firm? For the industry?

A: Purely competitive firms are characterised by being price takers where decisions are made…

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 perfectly competitive firm finds itself operating at a loss, it will

A: To find : For a perfect competitive firm in short run if it find itself operating loss what will…

Q: The short-run supply curve of a firm operating in a perfect competition market is equal to the…

A: A shutdown arises when price or average revenue (AR) falls below average variable cost (AVC) at the…

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: The demand curve for a perfectly competitive firm is a) always greater than its marginal revenue…

A: Perfect competition is a business system where a homogeneous commodity is sold by several companies.…

Q: What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive…

A: Prefect competitive market is:- 1) in perfect competitive market, there are many number of sellers…

Q: In a perfectly competitive market, the individual firm's demand curve A) slopes steeply downward to…

A: In a perfectly competitive market, there is a large number of buyers and sellers. Each seller is…

Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?

A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.

Q: Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average…

A: A break-even price is the amount of money, or change in value, for which an asset must be sold to…

Q: In a perfectly competitive industry, what mechanism that adjusts price to minimum long-run average…

A: Firms are considered perfect competition when these conditions happen: (i) the industry consists of…

Q: Why would a profit-maximizing, perfectly competitive form continues to operate for a period of time…

A: A perfect competitive firm who is facing losses in the market will decide to shut down if the price…

Q: The connection between marginal revenue and price depends on a business's competitive environment.…

A: Under perfect competition, there exists a large number of buyers and sellers. Each firm sells…

Q: Why will profits for firms in a perfectly competitive industry tend to vanish in the long run?

A: Perfectly competitive markets are the one's where there are multiple buyers and sellers, products…

Q: Under what conditions should a competitive firm shut down in the short run?

A: In the short term, a corporation that operates at a loss (where the income is less than the overall…

Q: “In a perfectly competitive market, firms always operate at the lowest per-unit cost." Is the…

A: A market(mkt) is said to be perfectly-competitive when there is a large number of buyers(b) and…

Q: Define perfect competition. Does a firm under perfect competition always make supernormal profit?…

A: The Perfect Competition market is that type of market in which the number of buyers and sellers is…

Q: A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the…

A: Perfectly competitive industry It refers to a industry in which there are large number of buyers and…

Q: What is the relationship between marginal cost and the short-run supply curve for the purely…

A: Supply curve is the graphical representation of direct relationship between price and quantity…

Q: The table below gives the short run total cost function for a typical firm in a perfectly…

A:

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: The graph shows the cost curves for a perfectly competitive firm. If the market price of the product…

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

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: Why is the marginal revenue of a perfectly competitive firm equal the market price?

A: Marginal revenue: it refers to the additional revenue received from the sale of an additional good.…

Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…

A:

Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC АТС…

A: At profit maximization, MR = MC and price is determined by the demand curve.

Q: Suppose a perfectly competitive firm’s demand curve is below its average total cost curve. Explain…

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

Q: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: In the long-run equilibrium of a competitive market with identical firms, what are the relationships…

A: please find the answer below.

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: 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: In a perfectly competitive market, please compare the short run and long run prices in an increasing…

A: Perfect competition refers to the market structure where there are a large of number of buyers and…

Q: the profit maximization condition for a perfectly competitive firm in the short-run- is

A: Perfect competition is the market form that involves a large number of buyers and sellers in the…

Q: Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve?

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

Q: If the price was given what is the formula equation to figure the "profit-maximizing quantity of…

A: Perfect competition is a market situation where there are many buyers and sellers. Thus, the firm is…

Q: Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the…

A: A perfect competition(PC) market is one with many consumers and sellers producing identical…

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: The marginal revenue curve for a perfectly competitive firm is

A: Marginal revenue is the additional revenue earned through the sale of additional output. A graphical…

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

A: A profit-maximizing output level is when that gives highest returns to the firm as any change in…

Q: A perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price…

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