Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that
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- As we begin to study different market structures, consider a market that is fiercely competitive. List the industry. What are the pros and cons of competition? Is competition in this industry a good thing? Why or why not? Would you say this is a purely competitive industry? Explain.A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?What are the three conditions for a market to be perfectly competitive? For a market to be perfectly competitive, there must be A. many buyers and sellers, with all firms selling identical products, and no barriers to new firms entering the market. B. many buyers and nothingsellers, with all firms selling identical products, and substantial barriers to new firms entering the market. C. many buyers and sellers, with firms selling similar but not identical products, with low barriers to new firms entering the market. D. many buyers and one seller, with the firm producing a product that has no close substitutes, and barriers to new firms entering the market.
- Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. Suppose Hi-Tech's patent prevents other firms from using the new technology. Which of the following statements are true about what happens in the short run? Check all that apply. O Hi-Tech's average-total-cost curve shifts downward. O Hi-Tech's profits increase. The price of books remains the same. O Hi-Tech's marginal-cost curve remains the same.12.3 A perfectly competitive market has 1,000 firms. In the very short run, each of the firms has a fixed supply of 100 units. The market demand is given by Q = 160,000 10,000P. a. Calculate the equilibrium price in the very short run. b. Calculate the demand schedule facing any one firm in this industry. c. Calculate what the equilibrium price would be if one of the sellers decided to sell nothing or if one seller decided to sell 200 units. d. At the original equilibrium point, calculate the elasticity of the industry demand curve and the elasticity of the demand curve facing any one seller. Suppose now that, in the short run, each firm has a supply curve that shows the quantity the firm will supply (q) as a function of market price. The specific form of this supply curve is given by 9-200+50P. Using this short-run supply response, supply revised answers to (a)-(d). 11A new korean restaurant opens in a city. People are initially cautious about eating newfood items, until an influential health report warns consumers against korean foodsuggest that they decrease their consumption of Korean foods. As a result, demand forKorean cuisine decreases dramatically.Assuming that the market for Korean food is perfectly competitive, answer thequestions below.a. In the story above, what should have happened to the short-run economic loss of theKorean restaurant as a result of the health report?b. Assuming that demand remains low, what do you anticipate will happen to thenumber of korean restaurants in the city over the long run?c. Would you predict that the first korean restaurant would be able to still running inloss over the long run? Explain your answer.d. Using one graph of the market as a whole and one graph of a representative firm'scost curves, illustrate your answers to parts a - c. (Draw diagram of a, b and c and labelyour diagram).e. Local…
- A new korean restaurant opens in a city. People are initially cautious about eating newfood items, until an influential health report warns consumers against korean foodsuggest that they decrease their consumption of Korean foods. As a result, demand forKorean cuisine decreases dramatically.Assuming that the market for Korean food is perfectly competitive, answer thequestions below.a. In the story above, what should have happened to the short-run economic loss of theKorean restaurant as a result of the health report?When will a firm neither enter or exit a competitive market?If there were 20 firms in this market the short run equilibrium would be $___ per pound. At this price firms in the industry would _____. Therefore in the long run firms would _____ the titanium market. Because you know that competitive firms earn ___ economic profit in the long run , you know the long run equilibrium Price must be $__ per pound. From each graph you can see that this means there will be __ firms operating in the titanium industry and long run equilibrium. True or false assuming implicit cost are positive each of the firms operating in industry in the long run earns negative accounting profit.
- st.ca/ 2. If you are operating a business in a perfectly competitive market. You can sell as much as at the market price. Why can you not simply increase your profits by selling a highest quantity? Answer: 3. Your company operates in a perfectly competitive market. Your Manager told you that advertising can help you increase your sales in the short run. What kind of advertising campaign you will start for your product and how much gain is expected from an effective advertisement? Answer: 4. Suppose you are running a business and thinking to enter the monopoly market. As per your calculation, you can make a profit by keeping your product price 20% less than the monopolist. Explain, how the monopolist might react to stop you to enter the business? Answer: 5. The real GDP per capita of many countries such as China and Korea are greater than that of the US. Does this indicate that these countries will eventually overtake the US in terms of the growth rate of real GDP per capita? Explain.…Generally, when preferences for a good rise, demand for the good rises. If a perfectly competitive market starts in long-run in the industry and equilibrium, holding all else constant, this will result in a higher market price, which will lead to the market. This causes price to None of these 3 possible answers listed here are correct. economic losses; attracts new firms into; fall economic losses; causes some firms to leave; rise further O positive economic profits; causes some firms to leave; rise furtherAsap no AI True or False: In a perfectly competitive market, firms have significant market power.
