What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down decision?

Q: Which of the following distinguishes the short run from the long run in pure competition?

A: Pure Competition or Perfect Competition is defined as a theoretical market structure where all the…

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…

A: In a perfectly competitive market, there will be a large number of sellers, which means that a…

Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…

A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…

Q: Will a Perfectly competitive market display productive efficiently? Why or why not?

A: A perfectly competitive market is the one where there are a large number of buyers (consumers) or…

Q: What are the assumptions of perfect competition?  What are the prospects for profitability in the…

A: The perfect competition is a theoretical market structure, which follows some assumptions. In this…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: In perfect competition, why do firms act as price takers? What happens if they charge a different…

A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…

Q: must each perfectly competitive firm be in equilibrium if the industry is in the long-run…

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

Q: What are the major characteristics of a firm competing under conditions of perfect competition?

A: The perfect competition is a market structure which is characterized by the presence of a large…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

A:

Q: Which of the following is NOT a characteristic of perfect competition?

A: To find: Which of the following is NOT a characteristic of perfect competition?

Q: What is the shape of the demand curve of a firm under perfect competition

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

Q: Why do you think a firm in a perfectly competitive industry does not have market power?

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Explain Long run equilibrium for a perfect competition

A: The long-run equilibrium point for a perfectly competitive market is said to have occurred where the…

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: In the long run, perfectly competitive firms make zero economic profit. If this is the case, why…

A: When a company's economic profit is zero, it is in a state of normal profit, which is why normal…

Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate

A: In the long term, all production components are interchangeable. Free entrance and departure, as…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: Under what conditions should a competitive firm shut down in the short run?

A: In the short term, a corporation that operates at a loss (where the income is less than the overall…

Q: In a perfectly competitive market, how do we go from a short run equilibrium to a long run…

A: A perfect competitive market is one there many firms offer homogenous product to a large group of…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: Why is Perfect Competition an ideal market structure? Please explain

A: In a market, a perfect competition is considered as an ideal market when there is other markets like…

Q: A firm under perfect competition is

A: To find : What is firm under perfect competition.

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

Q: What are some characteristics of perfect competition?  Is the Banana market a perfect competition?…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: When the perfectly competitive firm and industry are in long run equilibrium, then D - MP - SAC -LAC

A: To find : In perfect competition firma and industry are in long run equilibrium then what will be…

Q: Explain how the long run differs from the short run in pure competition.

A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…

Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…

Q: Can you explain what is Perfect Competition and how does Perfect competition work?

A: Market structure refers to the place where the transaction of goods and services takes place between…

Q: Explain market conditions in the long run

A: In the long run, perfectly competitive marketplaces look different than they do in the short run.…

Q: Why a competitive firm is price taker? Explain graphically why perfect competition is preferable to…

A: When the following conditions exist, firms are said to be in perfect competition: (1) many firms…

Q: Identify a perfectly competitive firm

A: A perfectly Competetive firm is a price taker it means it has to accept the market prevailing price.…

Q: The market for corn is perfectly competitive and all firms are in long-run equilibrium currently.…

A: If corn is an inferior good, then with rise in income of consumers, they will demand less amount of…

Q: Write down some examples of industries that are (close to) perfectly competitive. What attributes do…

A: Perfect competition is a kind of market in which a large number of suppliers of a homogenous…

Q: Predict and explain the long run equilibrium of a firm operating in a perfectly competitive market?

A: The structure of the market where there are a large number of buyers and sellers selling homogenous…

Q: Write down the assumptions of perfect competition

A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…

Q: In a perfectly competitive market ,why does the firm always break even in the long run ? Illustrate…

A: In perfect competition, in the very short run firms experience profits. However, new firms enter…

Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: Define a perfect competition market structure?

A: Market structure defines the features of a market in which the buyers and sellers interact to sell…

Q: What is Perfect competition?

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: In a perfectly competitive market, firms:

A: When there are large number of buyers and sellers in the market striving  for a product then there…

Q: the assumptions of perfect competition?

A: To find : Assumption of perfect competition.