In the short run, a perfectly competitive firm: a . is in equilibrium only when its economic profit is zero . b . might incur an economic loss. c will always make an economic profit . d . chooses its optimal plant size .
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- In the short run, a perfectly competitive firm A : might not make an economic profit. b. will always make an economic profit C. chooses its optimal plant size . d . is in equilibrium only when its economic profit is zero .If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and average total cost, it will A. keep producing in the short run but exit the market in the long run. B. shut down in the short run but return to production in the long run C. shut down in the short run and exit the market in the long run. D. keep producing both in the short run and in the long run.In the short run, a perfectly competitive firm can Select one: a. earn an economic profit. b. earn an economic profit, earn a normal profit, or incur an economic loss. c. earn a normal profit. d. incur an economic loss.
- If a firm in a perfectly competitive industry experiences persistent losses, in the long run it should A. exit the industry. B. continue to operate if it can raise the demand for its product through advertising and quality improvements. C. shut down temporarily and wait for market conditions to change. D. raise its price to cover average total cost.In Long-Run Competitive Equilibrium it is included as a cost and are not included in economic profit. a. profit maximization b. zero profit condition c. normal profit d. none of thisShow all the work clear handwriting Suppose the market price of a good is $20 and TC=0.5Q2. A. What Q should a profit maximizing perfectly competitive firm choose? B. What are profits? C. Draw a graph that shows the short run choice of Q, revenue and profits.
- In the short run a perfectly competitive firm will Select one: a. shut down if P is greater than AFC. b. shut down if P is less than ATC. c. shut down if P is less than AVC. d. never shut down.Would a firm earning zero economic profit continue to produce, even in the long run? In long-run competitive equilibrium, a firm earning zero economic profit A. will not continue to produce because this return is not covering its opportunity costs. B. will not continue to produce because it would be better off shutting down. C. will not continue to produce because such profit corresponds with negative accounting profit. D. will continue to produce because such profit is as high a return as could be earned elsewhere. E. will not continue to produce because it could earn a better return in another industry.A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
- The diagram below, shows the cost structure for a firm in perfect competition. Assume that the market price is £12. What should the firm do in the short- and log run if the price falls to 10? a. It should exit in the short run and also in the long run. b. It should keep operating in the short run but exit in the long run. c. It should keep operating both in the short- and the long run. d. We need more information to decide such an important question.Suppose a firm shuts down in the short run. Which of the following statements can you infer from the fact that the firm shuts down in the short run? a.The firm's losses are equal to its fixed costs. b.The firm would reopen in the long run. c.The firm's economic profits are zero. d.The firm's fixed costs are greater than its variable costs.What are some characteristics of perfect competition? Is the Banana market a perfect competition? When you are buying bananas, what is your decision making process? Do you have any favorite brand of banana? How can companies in the market compete? Please name some other examples of perfect competition?
