Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 9.3, Problem 1ST
To determine
Effect of earning high profits in the perfect competitive market.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
In a long-run equilibrium in a perfectly competitive market, firms earn positive economic profits.
Is this true?
How a firm respond to economy profits and economy losses in perfectly competitive market?
What is meant by a competitive firm? Explain the difference between a firm’s revenue
and its profit. Which do firms maximize?
Chapter 9 Solutions
Microeconomics
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.1 - Prob. 4STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.2 - Prob. 4STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2ST
Ch. 9.3 - Prob. 3STCh. 9.3 - Prob. 4STCh. 9.4 - Prob. 1STCh. 9.4 - Prob. 2STCh. 9 - Prob. 1QPCh. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Many plumbers charge the same price for coming to...Ch. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - According to the accompanying table, what quantity...Ch. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNGCh. 9 - Prob. 8WNGCh. 9 - Prob. 9WNGCh. 9 - Prob. 10WNG
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Similar questions
What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
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Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient.
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Explain whether a perfectly competitive market is more efficient for buyers to buy or sellers to sell things in
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Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
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Why does perfect competitive market need to be maintained?
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Fabulous Farms operates in a perfectly competitive market. Which of the following is required for Fabulous Farms to both maximize profits and achieve allocative efficiency?
A
P = MC
B
P > MC
C
P < MC
D
P = MC – MR
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