If a perfectly competitive firm operates in the short run but exits the industry in the long run, then the firm's short run condition is A) TR > TVC and TR < TC. B) TR > TC. C) TR < TVC. D) TR < TFC.
Q: . In a perfectly competitive industry, a. Firms earn a breakeven profit in the short-run, but…
A: In the short run, a firm that is operating at a loss (where the revenue is less that the total cost…
Q: 4. A perfectly competitive industry in long run equilibrium. A decrease in the demand for its…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: Underer the assumption of perfect competition in short run firms only earn abnormal profit.…
A: The perfect competition is the market structure with large number of buyers and sellers, selling…
Q: In a perfectly competitive industry, long run equilibrium is characterized by OP MC OP> ATC
A: In the perfectly competitive market, a firms' Profit Maximizing constraint is different in short-run…
Q: Under perfect competition, firms profit in the long run will be:- (1) normal profit (2) abnormal…
A: # Perfect competition is a market structure where large number of buyers and sellers are there. The…
Q: What is the short-run Shutdown condition for a perfectly competitive firm? P>AVCminimum…
A: In a market, a shutdown point refers to the point at which a firm is unable to recover its operating…
Q: Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly competitive…
A: Perfect competition is a market structure where there are many buyers and sellers selling…
Q: Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate…
A: The firm produces output at a profit-maximizing or loss-minimizing level of output which can be…
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: Question 23 If a perfectly competitive firm incurs an economic loss, it should shut down…
A: In a perfectly-competitive market there are a large number of buyers selling homogeneous-products to…
Q: In the short run, a perfectly competitive firm Question 15 options: chooses its optimal plant…
A: In perfect competition there are many firms producing identical goods.
Q: Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech…
A: In the long run, competitive firms will operate at a level where marginal cost cuts the average…
Q: When discussing pure competition, the term long run refers to a period of time long enough to allow:…
A: Option ‘c’ is the correct answer. Option ‘c’ - Because Option ‘a’ and ‘b’ both are correct. Hence,…
Q: In a perfectly competitive market, in the short-run, a firm shuts down if Their average cost is less…
A: A perfect competition market refers to the ideal market. This type of structure includes a variety…
Q: If price is consistently below average variable cost, then in the short run a perfectly competitive…
A: Average variable cost is given by AVC =TVCq
Q: Consider an industry where there is perfect competition (with the conventional horizontal long-run…
A: A perfectly competitive market is composed of a large number of small firms that produce and supply…
Q: Identify a perfectly competitive firm that you have purchased a good or service from in the last…
A:
Q: In a perfectly competitive market, many firms sell an identical product. True False
A: Four different types of market structures in an economy are perfect competition, monopoly, oligopoly…
Q: n the short run, a perfectly competitive firm can Select one: a. earn an economic profit. b. earn an…
A: In a perfectly competitive market, the firm is a price taker and there is free entry and the exist…
Q: Question 5.5. T-Shirt Enterprises is selling in a purely competitive market. It is producing…
A: Pure competition or perfect competition refers to the market structure where the number of buyers…
Q: State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling…
A: The market structure can be divided into four based on the degree of competition and the type of…
Q: Some firms in the market are making profit, others are having losses. Draw and explain graphs…
A:
Q: Here is information pertaining to a firm operating in a perfectly competitive marke Price $10.00…
A: A perfectly competitive firm produces output where P= MC
Q: (Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect…
A: Perfect competition:- According to theoretical framework, perfectly competitive exists when all…
Q: Explain equilibrium of the firm under perfectly competitive market by choosing output level at which…
A: A competitive firm produces output where P=MC=MR. At this output it earns profit or loss depends on…
Q: In the long run, new firms enter a perfectly competitive market when O A) normal profit is greater…
A: In perfectly competitive market, there are many buyers and sellers. Firms produce identical goods so…
Q: ncludes the firm’s dem
A: Perfect competition is a theoretical structure of market in which all firms tend to sell an…
Q: draw a short run firm and industry competitive equilibriums for a perfectly competitive…
A: It is given that the alligator-farming industry is perfectly competitive and earns zero economic…
Q: A firm in a competitive market has a short run cost curve given by C = Q' - 100 + 100Q + 100. (a) If…
A: ANSWER A perfectly competitive firm's short vun shut-down point is when p equals AVCmin If P…
Q: TRUE OR FALSE If a perfectly competitive firm shuts down in the short run, its total cost equals…
A: Perfectly competitive firm are those whose are price taker . They take the price which is formed by…
Q: 39. A perfectly competitive firm maximizes its profit by producing the level of output so that its…
A: In a perfectly competitive industry there are large number of firms selling identical products.
Q: 7.b) Assuming the perfectly competitive firm of Figure 8.8 survives in the long-run, it produces…
A: Pure or perfect competition is a theoretical market structure in which the following criteria are…
Q: Art’s Garage operates in a perfectly competitive market. At the point where marginal cost equals…
A: Perfect competition is theoretically a monopoly that allows a company to charge any price, as only…
Q: in a perfectly competitive industry, in the long run, firms earn a positive economic profit firms…
A: In financial matters, explicitly broad balance hypothesis, an ideal market, otherwise called an…
Q: Consider a perfectly competitive barley producing sector in Western Canada with increasing costs and…
A: The markets in an economy are considered to be of utmost importance for the economic, and financial…
Q: If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits. A) break-even…
A: A perfectly competitive firm has no control over price and to maximize profit a firm produces where…
Q: The packaged milk market in Pakistan is perfectly competitive. (1) Some firms in the market are…
A: Note: Since you have posted multiple independent questions in the same request, we will solve the…
Q: When should a firm shut down? In other words, what is the shut down point for a firm in perfect…
A: There are different types of costs that a firm encounters while making production decisions. These…
Q: Discuss with the help of graphical presentation and empirical example the situation that would cause…
A: Perfectly competitive market is the market where large numbers of sellers and buyers are exchanging…
Q: A perfectly competitive firm will be operating at its shutdown point if it operates at the minimum…
A: A perfectly competitive market is that form of the market with a large number of buyers and sellers.…
Q: Question 5.5 T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000…
A: There are significant numbers of companies selling a standardized product in a purely competitive…
Q: Demand Demand ATC MR MR Quantity of Sparkle Toothpaste Quantity of Sparkie Toothpaste Price, Cost,…
A: The market specified here is that of monopolistic competition. In the long run, a firm in a…
Q: Using diagrams derive a long-run market supply curve for 1)a constant-cost industry, 2)a…
A: In the long haul, all markets are in equilibrium, and all costs and quantities are absolutely…
Q: When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market…
A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…
Q: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which…
A: Answer:- (B) Firms to leave the industry, market supply to fall, and product price to rise.
Q: Firms in the market for dog food are selling in a purely competitive market. A firm producing dog…
A: A competitive market is one in which numerous producers compete for the goods and services that we,…
39) If a
A) TR > TVC and TR < TC. B) TR > TC.
C) TR < TVC. D) TR < TFC.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Revenue and cost (dollars per unit) MC AVC 50 40 30 10 10 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $10 a unit, to maximize its profit (or minimize its loss) the firm should A) produce 30 units. B) shut down. C) produce 40 units. D) produce between 10 and less than 30 units. E) produce more than 30 units and less than 40 units. 20 20Use table to find the required values: Price $32 Quantity 400,000 Explicit costs $3,500,000 Implicit costs $4,100,000 (A) Calculate total revenue. (B) Calculate accounting profit. (C) Calculate economic cost. (D) Calculate economic profit.P E A MR S ATC Av C What point reflects the price that a monopolist would charge? (letter) Answer 1 Q AV What point determines the output that would be produced under perfect competition? (letter)
- 1. A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costs of MC = 5 + 14g, and average variable costs of AVC = 5 + 7q. (a) What are the firm's variable costs (VC)? (b) What is the firm's total cost function? (c) If the price is $75, how much does the firm supply? (d) Does the firm continue to supply this quantity in the short-run? (e) Suppose there exists a standard market demand function from consumers (downward slopping). Please provide a logical discussion about how the market achieves short-run equilibrium.Based on the table below for a perfectly competitive firm: Quantity Fixed Variable Total Cost Cost Cost Marginal Cost ****: |10 20 200 50 200 100 250 300 5 500 20 1000X **** 30 40 200 300 200 800 (a) Find the marginal cost as X. (b) If the equilibrium price is $20, find the profit maximizing quantity. (c) How much profit will the firm earn?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.
- 24) What are shut-down losses (if the firm shuts down)?PROBLEM (4) The short run market supply for shirts is QS = 50P – 1000 and the market demand isQD = 2800 – 50P Let a typical firm operating in a perfectly competitive industry has short-run total cost and marginal cost curves: TC(q) = 100 + 20q + q2 and MC(q) = 20 + 2q (a) Determine the short run market equilibrium price and quantity for this type of shirt.(b) Determine how much the typical firm will produce at the equilibrium price you found in (a).(c) If all firms had the same cost structure, how many firms should be operating in this industry at the moment? (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are making losses, why are they still producing in the short run? In the long run, will there be entry into the market or exit from it?(e) What would the price be in the long run equilibrium, assuming constant cost industry?(f) In the long run equilibrium, how many shirts would each firm produce? What would be a firm’s net profit?(g) How…Assume that Jasmine is a typical firm that produces and sells T-shirts in a perfectly competitive constant- cost industry. The market is currently in long-run equilibrium. The market price is $5, and Jasmine's marginal cost at each level of output is listed in the table below. Quantity of Output 0 1 2 3 4 5 6 Marginal Cost 0 2 3 4 5 6 7 (a) What is Jasmine's pront-imamizing quantity of output? Explain. (b) Draw a correctly labeled graph for Jasmine, and show Jasmine's total revenue at the profit-maximizing quantity, shaded completely. (c) Now assume consumer demand for T-shirts increases. What will happen to the number of firms in the market in the long run? Explain.
- 1. A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costsof MC = 5 + 14q, and average variable costs of AVC = 5 + 7q.(a) What are the firm's variable costs (VC)?(b) What is the firm's total cost function? (0) If the price is $75, how much does the firm supply? (d) Does the firm continue to supply this quantity in the short-run? (e) Suppose there exists a standard market demand function from consumers(downward slopping). Please provide a logical discussion about how the marketachieves short-run equilibrium.Required information The following figure shows the costs for a perfectly competitive producer. AVC, ATC, MC $45 40 35 30 25 201 15 10 5 0 C 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?Required information The following figure shows the costs for a perfectly competitive producer: AVC, ATC, MC $46 235 30 25 20 15 10 5 0 MC 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $10, what is the profit-maximizing (or loss-minimizing) output?