In the long-run equilibriumof a competitive market with identical firms,what are the relationships among price P,marginal cost MC,and average cost of ATC? a.P> MCand P>ATC. b P>MCand P= ATC c.P= MCand P> ATC d.P= MCand P= ATC
Q: Suppose that the market for gasoline is a perfectly competitive market. All gas station owners face…
A: A perfectly competitive firm is a price taker as there are large number of firms selling identical…
Q: a. Complete the above table. b. Graph TFC curve, TVC curve and TC curve on the same graph. c.…
A: as per your request last two questions has been done TC=TFC+TVC MC= ∆TC/∆Q TR=P*Q MR=∆TR/∆Q
Q: In a perfectly competitive market, which two conditions must be met to achieve long-run equilibrium?…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: MC E ATC AVC Output igure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm.…
A: In perfect competition, eqm. Q(quantity) is determined by the intersection of MC(marginal cost) and…
Q: In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues…
A: False, The given statement is false because at the level of "MR=MC", the firm maximizes the profit…
Q: der perfect competition, firms profit in the long run will be abnormal profits.
A: A firm's profit is maximized profits in a perfectly competitive market Where marginal revenue (MR)…
Q: Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these…
A: Given : Roots Wholefoods sells fruits and vegetables in a perfectly competitive market.
Q: Starting from long-run equilibrium in a perfectly competitive increasing-cost industry, show on a…
A: As shown in the diagram when market demand shifts rightwards then price increases. At a higher…
Q: age operates in a perfectly competitive market. At the point where marginal cost equals marginal…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In perfect competition marginal cost curve of a firm shows supply curve of the firm in short run.…
A: The perfectly competitive markets are characterized by the presence of a large number of buyers, and…
Q: Consider the market for wheat, which is approximately perfectly competitive. The average total cost…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: Which formula represents the profits for a firm? (check all that apply) (AC=average cost,…
A: Total cost is the overall cost incurred in the course of production of the good.
Q: Pretzel stands in New York City are a perfectly competitive industry in long-runequilibrium. One…
A: Perfect Competition refers to the type of market where there are large numbers of buyers and sellers…
Q: A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of…
A: The perfect competition is a market condition in which there are many producers and the production…
Q: In the short-run equilibrium of a competitive marketwith identical firms, if new firms are getting…
A: Perfect competition is a market structure in which characterized by a large number of buyers and…
Q: In the short run, a perfectly competitive firm should continue to produce as long as it can cover…
A: In the short run, a perfectly competitive firm should continue production till price per unit is…
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table (a)Calculate average…
A: A perfectly competitive firm maximizes profit by prducing output at level where P = MC Total Revenue…
Q: Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly…
A: Here, it is given that Stephanie's soda fountain operates its business or supplies ice-cream in…
Q: At prices that motivate the firm to produce at all, the short-run supply curve for the perfect…
A: A firm is said to be operating in a short run if the marginal cost is not equal to its total cost.…
Q: Which of the following is not a characteristic of a perfectly competitive market? A small number of…
A: In perfect competition, firms are price takers, that is price is determined by market forces of…
Q: In long run equilibrium, the perfect competitive firm produces. a) where P=MC=AC b) at the lowest…
A: Answer - Long-run equilibrium ( at the perfect competitive market ):- Under Long-run equilibrium,…
Q: Some firms in the market are making profit, others are having losses. Draw and explain graphs…
A:
Q: Suppose Martha's Muffin Mart operates in a perfectly competitive market and is producing its…
A: The perfectly competitive market is a market type with a large number of buyers and sellers of the…
Q: In a perfect competitive industry, the market price is R20. An individual firm produces output at…
A: Answer: C (they should decrease production) Explanation: The price is less than the marginal cost…
Q: Figure 8 shows a price-taker firm with demand curve, D, a short run cost curve, AC, and marginal…
A: A perfectly competitive firm is a price taker. It means the price is determined by the market…
Q: For a perfectly competitive firm, profit maximization happens at: A. P=MC B. AR=MC C. MR = ATC D. MR…
A: A perfectly competitive market is the special type of market where a single firm cannot influence…
Q: In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a…
A: Perfectly competitive market is the market in which all firms produce homogeneous product and sell…
Q: Modified True or False: State whether each statement is true or false. If the statement is false,…
A: In long run, if price is below average total cost, it means the firm is not able to pay to its…
Q: Which describes the firms supply curve for the short run with perfect competition? O The section of…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The firm in pure competitive
A: A theoretical market structure that meets the following requirements is known as pure or perfect…
Q: Explain why P=MC in the short run equilibrium of the perfectly competitive firm, whereas in long run…
A: Economic efficiency includes the allocative (P = MC) and productive (MC = AC) efficiencies. Both…
Q: 7. Which of the following is true? a. Productive efficiency occurs in perfect competition because…
A: 7.In perfect competition,both productive and allocative efficiency is there.That would be the case…
Q: A competitive firm’s short-run supply curve is its_________ cost curve above its _________…
A: The market is the collection of buyers and sellers. It is the system in which buyers and sellers…
Q: Tara sells her organic carrots in a perfectly competitive market for a price that is just higher…
A: Here, if given that that Tara is operating her business in perfectly competitive market with price…
Q: 31.) Which curve represents the marginal cost of the firm? a.) A b.) В с.) С d.) None of the above…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Q4) Answer the following, providing a graphical illustration along with your answer where necessary:…
A: A perfectly competitive market is the one in which there are many sellers and buyers . Also there is…
Q: Consider a perfectly competitive firm's average total cost curve, average variable cost curve, and…
A: In pefect competition firm in long term generally earn normal profit . In short run firm must…
Q: Consider a profit-maximizing firm in a competitive industry. For each of the following situations,…
A: In a competitive industry, the profit of a firm gets maximized at the point where marginal revenue…
Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $100…
A: (a) A perfectly competitive firm produces at P=MC in short run. C = 60 + 12Q + 2Q2 Differentiate C…
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: Roots Wholefoods sells fruit and vegetables in a perfectly competitive market. Which of these…
A: The market demand curve slopes downward, whereas the demand curve of a perfectly competitive firm is…
Q: ong-run equilibrium of a perfectly competitive market with identical firms, which of the ng will be…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Chetan's Fishing Rods is a small business that operates as a price-taker. The market price of a…
A: Given: Price of fishing rod=$30 C(q)=0.1q2+10q+10 Note: Due to multiple subparts being posted, the…
Q: Suppose that the market for gasoline is a perfectly competitive market. All gas station owners face…
A: In long run, the perfectly competitive firm's economic profit is zero. Because there are a large…
In the long-run equilibriumof a competitive market with identical firms,what are the relationships among price P,marginal cost MC,and average cost of
a.P> MCand P>ATC.
b P>MCand P= ATC
c.P= MCand P> ATC
d.P= MCand P= ATC
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price (P), marginal cost (MC), and average total cost (ATC)?) In the long run equilibrium of a competitive market with identical firms, what is the relationship between price ( P ), marginal cost ( MC ), and average total cost ( ATC )? if P > MC and P > ATC. P > MC and P = ATC.In the short-run equilibrium of a competitive marketwith identical firms, if new firms are getting readyto enter, what are the relationships among price P,marginal cost MC, and average total cost ATC?a. P > MC and P > ATC.b. P > MC and P 5 ATC.c. P MC 5 and P > ATC.d. P MC 5 and P 5 ATC.
- Assume that the cost curves in the attached figure apply to all firms in an industry. Then, if the initial price is P1, in the long run:a. Market demand will increaseb. Market demand will fallc. Market supply will growd. Market supply will fall.Suppose a perfectly competitive firms demand curve is below the ATC curve. Explain the conditions under which a firm continues to produce in the short run. Based on the table above, if the competitive equilibrium price $14 a) what is the profit maximizing output for this firm? b) What is the maximum profit the company can make?A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?
- The firm in pure competitiveAssume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? ExplainConsider the perfectly competitive market for steak (a normal good). Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q. P, and r in the market for steak (in comparison to the starting point) if income increases. Briefly explain.
- Consider a profit-maximizing firm in a competitive industry. For each of the following situations, indicate whether the firm should shut down production or produce where MR = MC. a. P < minimum AVC. b. P > minimum ATC. c. Minimum AVC < P < minimum ATC.The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than marginal cost. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Average total cost will decrease. The quantity supplied by each firm will decrease. The total quantity supplied to the market will decrease. Marginal cost will decrease. The price of fertilizer will increase.Assume that a perfectly competitive firm faces the market equilibrium price P*=$6. When the firm maximizes its positive profit in the short-run, its average total cost (ATC) and marginal cost (MC) are most likely as Group of answer choices ATC=6 and MC=4 ATC=4 and MC=6 ATC=4 and MC=4 ATC=6 and MC=6