Under what conditions will a firm exit a market?Explain

Q: List the conditions required for purely competitive markets.

A: Different forms of market structures differ in their level of competitiveness, ranging from highly…

Q: How does a competitive firm determine the quantity that maximizes profit?

A: The markets are considered to be of utmost importance for the economies, because it assists in the…

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: Describe any four requirements for a perfectly competitive goods market

A: A perfectly competitive market refers to the place where sellers charge the same price from buyers…

Q: the demand curve for a competitive firm is

A: A competitive firm is a price taker, since it operates in a market that has many buyers, and many…

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

A: Perfectly competitive market: It is the market where large number of buyers and sellers dealing in a…

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

A: ANSWER     The level of profit maximization depends on various factors such as the efficiency of…

Q: When will a firm enter a competitive market?

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: Distinguish the difference between the market demand curve and the demand curve that a particular…

A: Market demand curve: The market demand curve shows the total quantity demanded at a given price by…

Q: What is the relationship between economies of scale and the level of market competition?

A: Economies of scale help more than just the company that produces the goods. Consumers will benefit…

Q: Under what conditions will a firm exit a market? Explain theoretically and graphically.

A: Short‐run supply curve- The short‐run supply curve of the firm is the portion of its marginal cost…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: What are the options available to a firm when the market demand exceeds capacity?

A: Here's a set of features that assist companies in proactively addressing excess demand and…

Q: What happens when a perfectly competitive market is in equilibrium?

A: A perfectly competitive market is a market structure in which there are many buyers and sellers. The…

Q: In a competitive market, firms sell homogeneous type of products. а. Т b. F

A: Competitive Market: It is a form of market where there are large number of buyers and a large number…

Q: Could you explain what is the long run and short run of a firm in a market

A: Production by a firm depends upon the time period. In the short run, the production possibilities of…

Q: What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit.…

A: The firm is an individual unit of the business which produce and sell the product in the market. The…

Q: Under what conditions will a firm shut down temporarily? Explain.

A: One of the classifications of a firm’s costs is fixed cost (FC) and variable cost(VC). Fixed costs…

Q: In a perfectly competitive market, each of the 10 consumers in in the market has demand…

A: Demand:P(q) = 100-5.7q q = 100

Q: Determine the equilibrium price for each firm *

A: Given For firm 1 =q1 =20-p1 +p2TC1 = 10q1and for firm 2 = q2 =20+p1 -p1TC2 = 10q2

Q: When do firms decide to (i) stay in the market, (ii) shutdown the firm's operations, and (iii) exit…

A: 1) Stay in market In case there are benefits to be made, firms will stay the market as there are no…

Q: What are the Characteristics of a Purely Competitive Market?

A: Characteristics of a Purely Competitive Market:   The Purely competitive market is the market…

Q: equilibrium

A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…

Q: Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price…

A:

Q: List the requirements for a perfectly competitive goods market.

A: For a particular production process, there has to be some factors of production available. For…

Q: The following data for a small farm operating in a perfectly competitive market are given in the…

A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…

Q: Question 17 Referring to Figure 1 in Question 14, When price is $175, will firms enter or exit the…

A: Perfect competition is a type of market structure.

Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…

A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…

Q: When is it the right time when a firm will enter a competitive market?

A: A competitive market is considered as one where firms have no opportunity to deviate from market…

Q: What is the long-run equilibrium price in this market? Please enter your answers as whole numbers…

A: From the above graph, one can observe that this is the competitive market, where demand(d) is equal…

Q: Suppose that the market for black leather purses is a competitive market. The following graph shows…

A: If a firm is perfectly competitive, it can sell as much as it wants as long as it accepts the…

Q: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

A:

Q: Which of the following is a characteristic of a perfectly competitive market? A. The goods sold in…

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

Q: How low would the market price haveto fall before the firm decided to produce nothing?

A: During production, firm incurs various costs. Some costs are fixed while some are variable. Fixed…

Q: A firm sells a product in a purely competitive market . The marginal cost of the product at the…

A: The firm produces various goods and services. The competitive market would result in many buyers and…

Q: the market price in a competitive industry were above its equilibrium level, what would you expect…

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

Q: Explain the effects firms entering or exiting have on the price and supply of a market. (assume the…

A: A perfectly competitive market is a type of market structure in which a large number of small firms…

Q: The market supply curve in a perfectly competitive market is typically?

A: A firm in a perfectly competitive market is a price taker. It has a supply curve which is the rising…

Q: Refer to the above diagram for a purely competitive producer. The lowest price at which the firm…

A: Pure competition is a market structure with a broad range of buyers and sellers which is really…

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: What do you mean by the equilibrium of a firm?

A: According to the given question In Economics the firm is basically a central institution which helps…

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: What is special about a purely competitive market?

A: A perfectly competitive market is the market in which there is perfect competition amongst buyers…