If the price of a product produced by a perfectly competitive firm falls below the average total cost, what would you predict about production in (i) short run (ii) long run
Q: In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while…
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Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…
A: No, a perfectly competitive firm would not produce if price were less than the minimum level of…
Q: Show and explain how the short run supply curve of the perfectly competitive firm is derived.
A: in a perfectly competitive market there are large number of firms producing similar and identical…
Q: Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average…
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Q: Explain why a perfectly competitive firm earns zero economic profits in the long run.
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Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: Marginal cost is the additional cost incurred on the production of one extra unit of the output. In…
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Q: A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s…
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Q: In the short run, a perfectly competitive firm should continue to produce as long as it can cover…
A: In the short run, a perfectly competitive firm should continue production till price per unit is…
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1.
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A: 3.1Long-run equilibrium in a scenario of a perfectly competitive industry is said to have occurred…
Q: What is the relationship between marginal cost and the short-run supply curve for the purely…
A: Supply curve is the graphical representation of direct relationship between price and quantity…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: The above given is a case of a firm under perfect competition. The equilibrium condition is P= AR=…
Q: The table below gives the short run total cost function for a typical firm in a perfectly…
A:
Q: The graph shows the cost curves for a perfectly competitive firm. If the market price of the product…
A: A perfectly competitive market is where there are large number of buyers and sellers. The price of…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: Since, you have posted multiple subpart questions, as per the guidelines we will answer first…
Q: Q4) A perfectly competitive firm has the following total cost function: 05 Total output Total Cost…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The graph depicts the average total cost curve for a perfectly competitive firm. At the long-run…
A: In a perfectly competitive market, price is constant at all levels of output so it is equal to…
Q: We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the…
A: In a perfect competitive market, there are large number buyers and sellers selling identical goods…
Q: A perfectly competitive firm is producing at the point where its marginal cost equals the price of…
A: We are going to use profit maximisation structure of a perfectly competitive firm
Q: Suppose the short-run cost function of a perfectly competitive firm is C(q)=10q-q^2+1/3q^3+100 Solve…
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Q: Refer to the above graph for a purely competitive firm in the short run. What minimum output level…
A: In order to answer this question, it is imperative to understand the concepts of breakeven and…
Q: Would a perfectly competitive firm produce if price were less than the minimum level of average…
A: In perfectly competitive market, there are large number of firms selling identical goods.
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A: The money spent to purchase the factor of production to produce the good is called cost of the…
Q: A perfectly competitive firm is making a loss if
A: We have to find a perfectly competitive firm is making a loss.
Q: draw marginal cost, marginal revenue, and average total cost curves for a typical perfectly…
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Q: Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the…
A: A perfect competition(PC) market is one with many consumers and sellers producing identical…
Q: Given the following short run production cost schedule: Short Run Total Cost Function…
A: Average cost (AC) =Total cost (TC)Quantity(Q)Marginal cost (MC) =TCn-TCn-1
Q: perfectly competitive firm incurs an economic loss, it should: a
A: ANSWER a perfectly competitive firm incurs an economic loss, it should is
Q: Does a competitive firm’s price equal its marginal cost in the short run?
A: A competitive firm is one that produces and sells output in the market with many sellers who offers…
Q: You are a business manager working for a firm in a purely competitive market and you just hired a…
A: a) The profit of a perfectly competitive firm is when its MC = price. Also, this firm is a price…
Q: What is the formula for profit maximization by firm ? Why does this result in the marginal cost…
A: The profit for a firm can be calculated by subtracting the total cost (TC) from the total revenue…
Q: In the above figure, The cost curves of a typical perfectly competitive curve are show. What will…
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If the price of a product produced by a
the
(i) short run
(ii) long run
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- The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. O The price of fertilizer must be less than marginal cost. O The price of fertilizer must be less than average total cost. O The price of fertilizer must be equal to average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Firm Market Demand ATC -- ---- P. TAyd MC Quantity Quantity If firms in the market are producing output but are currently making economic losses, illustrates the present situation for the typical firm in the market, and S ▼ indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. O The…Hi. I'm a little confused on how the short run supply curve of a price taking firm is determined. Do i use the marginal costs and the average variable cost curves and use the diagram for that to find the short run supply curveWhat is the equilibrium or profit-maximizing quantity of production for a perfectly competitive firm?
- What is the relationship between marginal cost and the short-run supply curve for the purely competitive firm?A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 90 + 10q + 2q² and a marginal cost function (MC) of MC(q) = 10 + 4q. At the given market price (P) of $16, the firm is producing 1.50 units of output. Is the firm maximizing profit?In the short-run, if the marginal cost of a firm in a competitive industry is upward sloping while itsaverage variable cost is downward sloping, what can you say about slope of average total cost?
- What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. The number of firms will eventually increase, but the existing firms will cut back production in the short run. a b C Question 81 d The number of firms will eventually decrease and the existing firms will cut back production in the short run. The number of firms will eventually decrease, but the existing firms will expand production in the short run. The number of firms will eventually increase and the existing firms will expand production in the short run.What is the short run Supply Curve for a competitive firm?What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C Question 5 d The number of firms will eventually increase, but the existing firms will cut back production in the short run. The number of firms will eventually decrease and the existing firms will cut back production in the short run. The number of firms will eventually decrease, but the existing firms will expand production in the short run. The number of firms will eventually increase and the existing firms will expand production in the short run. B
- Does a competitive firm’s price equal its marginalcost in the short run, in the long run, or both?Explain.Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the longrun, or both? Explain.Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390
