 Show Transcribed Image Text:Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 20 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should Select one: a. produce 30 units. b. produce more than 30 units and less than 40 units. c. produce 40 units. d. shut down. e. produce more than 10 and less than 30 units. Q: What is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit.… A: Competitive firm is a type of firm which is a price taker ie it has less influence on the prices in… Q: Question 14 Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the… A: The profit is the excess revenue made by the firm after deducting the total cost of production from… Q: b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1,… A: Economics is a branch of social science that describes and analyzes the behaviors and decisions… Q: Assume that apples are produced in a perfectly competitive market. Columbia’s Orchard is a typical… A: b) Given the apples have become popular and their demand has increased. This would shift the demand… Q: 10 In the long run a perfectly competitive industry will have all firms making profits O all firms… A: A perfectly competitive industry is one in which a larger number of sellers are allowed to offer… Q: he graph attached illustrates the Demand, Marginal Revenue, Marginal Costs, Average Total Costs and… A: A perfectly competitive earns zero economic profit in the long run .Break even price is that price… Q: fP $25, AVC = $20, and ATC = $50, in a perfectly competitive market, what should the firm do in the… A: Here, given information is: Price= $25 Average variable cost: $20 Average total cost: $50 Q: 2. Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price… A: In an economy, oil is considered as a cruical resource because it can be used in various areas and… Q: 37) In a perfectly competitive industry, the market price of the product is $15. Firm A is currently… A: In a perfectly competitive industry the profit is calculated as: Profit =Total Revenue - Total Cost… Q: 1. Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its… A: The correct solution is option c. Q: the economic model of perfectly competitive market is very unrealistic because it predicts that… A: Perfectly competitive market is the place where new entrants have the opportunity to operate their… Q: The economic model of perfectly competitive market is very unrealistic because it predicts that… A: Perfect competition is one of the forms of a market that involves a large group of sellers and a… Q: Perfectly competitive firm that makes economic loses in the short run must cease its operations. do… A: Perfectly competitive firm is a price taker because there are many sellers in the market selling… Q: The MoonShine Restaurant operates in the competitive restaurant industry and has a total cost… A: A perfectly competitive market is one that has a large number of firms selling homogenous goods.… 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: cost curves to those of Smart in question 3. a.) What happens to the number of firms producing… A: In the long run, firms are producing output at lowers point of average cost curve. This point can be… Q: Graph the following for a perfectly competitive firm: A graph for long run – normal profit for the… A: The perfect competitive market is the market with large number of buyers a seller with symmetric and… Q: QUESTION 7 (10 points): • Explain the effect of an increase in demand in a perfectly competitive… A: Short Run - Increase in Demand When market demand increases, the market price of the good rises, and… Q: (a) A competitive firm’s short-run supply curve depends on two curves. Which two exact curves are we… A: A competitive market refers to a market in which there are multiple producers. The producers compete… Q: Reagan is a farmer and sells her wheat in a perfectly competitive market. Reagan produces 30,000… A: A perfectly competitive firm in the short run will continue to produce even when the firm is making… Q: QUESTION 7 • Explain the ettect of an increase in demand in a perfectly competitive market in the… A: The perfectly competitive market is the market structure where a large number of firms compete in… Q: 5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high… A: In the long run, many new firms enter the perfectly competituve industry as they are attracted by… Q: Graph the following for a perfectly competitive firm: A graph for short run economic loss for the… A: In perfect competitive market, there are number of buyers and sellers, selling similar products.… Q: 1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry… A: Hi there! Thank you for the question. Since we only answer one question, we will answer the first… Q: In the figure attached, which perfectly competitive firm (a, b or c) earns economics profits incurs… A: The markets are the places where the consumers of various goods, and services tend to meet, and… Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.… A: Economics is a branch of social science that describes and analyzes the behaviors and decisions… Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.… A: Economics is a branch of social science that describes and analyzes the behaviors and decisions… Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.… A: Economics is a branch of social science that describes and analyzes the behaviors and decisions… Q: Graph the following for a perfectly competitive firm: A graph for short run economic profit for the… A: In a perfect competitive market, there are numbers of buyers and sellers, selling similar products.… Q: Sterling runs a donut shop which which is being operated in a perfectly competitive market where… A: Firms in perfectly competitive market, are price taking firms because there are a large number of… Q: c. Why does price equal marginal revenue for the perfectly competitive firm? What is the… A: c) In a perfect-competition, there is conceptually infinite number of firms competing with one… Q: Economics Firms earn super normal profit in perfect competition market? 1) True 2) False A: Perfect competition market refers where large number of buyer and sellers sell homogenous product in… Q: unuou A tomato farmer operates in a perfectly competitive industry. Revenues are $2,000 a montn, toi… A: Perfectly competitive market structure is the market structure in which there are large number of… Q: 1. Explain how the long run differs from the short run in pure competition. 2. The basic model of… A: 1. In the short run, when plants and gear are fixed, the organizations in an absolutely competitive… Q: List the characteristics needed for a perfectly competitive market. Provide a simple explanation of… A: A perfectly competitive market is the market in which there are lots of buyers and sellers, buying… Q: rements for a perfectly competitive goods market. Q.6.2 Explain, with the aid of a graph, the… A: The type of market structure which is hypothetical and ideal where consumers and producers tend to… Q: What is the profit maximizing level of output for the firm? How much profit is this firm earning?… A: Profit maximizing level of output is achieved where price and quantity are equal i.e., in… Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output… A: A competitive firm faces a parallel price line because in a competitive market, the firm is a price… Q: A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, and… A: Following information is provided in the question:Quantity sold per week – 1,000Price - $70AVC -… Q: A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, and… A: In the short run, firm must continue operating as long as it generates enough revenues to cover its… Q: A firm in a perfectly competitive industry currently faces a market price of $20 and is maximizing… A: (Q) A firm in a perfectly competitive industry currently faces a market price of $20 and is… Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below. Recommended textbooks for you ENGR.ECONOMIC ANALYSIS ISBN:9780190931919 Author:NEWNAN Publisher:Oxford University Press Principles of Economics (12th Edition) ISBN:9780134078779 Author:Karl E. Case, Ray C. Fair, Sharon E. Oster Publisher:PEARSON Engineering Economy (17th Edition) ISBN:9780134870069 Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling Publisher:PEARSON Principles of Economics (MindTap Course List) ISBN:9781305585126 Author:N. Gregory Mankiw Publisher:Cengage Learning Managerial Economics: A Problem Solving Approach ISBN:9781337106665 Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor Publisher:Cengage Learning Managerial Economics & Business Strategy (Mcgraw-... ISBN:9781259290619 Author:Michael Baye, Jeff Prince Publisher:McGraw-Hill Education ENGR.ECONOMIC ANALYSIS ISBN:9780190931919 Author:NEWNAN Publisher:Oxford University Press Principles of Economics (12th Edition) ISBN:9780134078779 Author:Karl E. Case, Ray C. Fair, Sharon E. Oster Publisher:PEARSON Engineering Economy (17th Edition) ISBN:9780134870069 Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling Publisher:PEARSON Principles of Economics (MindTap Course List) ISBN:9781305585126 Author:N. Gregory Mankiw Publisher:Cengage Learning Managerial Economics: A Problem Solving Approach ISBN:9781337106665 Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor Publisher:Cengage Learning Managerial Economics & Business Strategy (Mcgraw-... ISBN:9781259290619 Author:Michael Baye, Jeff Prince Publisher:McGraw-Hill Education How do you find the output of a perfectly competitive market?The key goal for a perfectly competitive firm in maximizing its profits is to calculate the optimal level of output at which its Marginal Cost (MC) = Market Price (P).
Which of the following is the best example of a perfectly competitive market?Therefore, agriculture is the best example of a perfectly competitive market.
What is a perfectly competitive firm quizlet?Perfectly competitive firms: are price takers, since they are not large enough to influence the market price. are individually able to influence the market price. will succeed by charging a price higher than that charged by the rest of the market.
Which of the following is true of a perfectly competitive market?The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.
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The above figure shows a perfectly competitive firm. if the market price is $40 per unit, the firm
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