QUESTION 7 • Explain the ettect of an increase in demand in a perfectly competitive market in the short-run and in the long-run. • More specifically, explain the impact of demand increase on the firm profits and on the number of the firms operating in the market. • Discuss the main assumptions underlying these results. (Hint: You may use graphs to illustrate your answer.)
Q: 1. In a perfectly competitive market, the marginal : of the firms is horizontal. revenue curve
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 2. The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the…
A: The supply curve of a firm illustrates the relationship between the price and quantity supplied.…
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: Refer to Figure #1. The long-run supply curve for a firm in a perfectly competitive market is the…
A: In an industry or a firm where the term expansion does not change the prices of inputs show as a…
Q: Required information Graph A shows the market demand and supply in a perfectly competitive market.…
A: A perfectly competitive firm is price taker which accepts the market price as given.
Q: 25. This question refers to the figure below which shows the price, marginal cost, and average cost…
A: Following are the information extracted from the graph: Price = 20 Quantity produces at the level…
Q: Question 1c. Why does price equal marginal revenue for the perfectly competitive firm? What is the…
A: The perfect competition is the market condition in which there are many buyers and sellers in the…
Q: 1. Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its…
A: The correct solution is option c.
Q: Q4. Which of the followings is an assumption for a perfectly competitive firm ? a) Product quality…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 1) Referring to Figure, at price $80, what is the profit-maximizing output in the short run? 2)…
A: This is a case of a perfect competition market. Here, in the short run Price= AR= MR = $80. The…
Q: 14 If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?…
A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…
Q: 46. The firms in a perfectly competitive are making an economic profit when new firms enter. the…
A: perfectly competition market is the market where large number of buyer and seller sell homogenous…
Q: the long-run equilibrium, all firms in a perfectly competitive market earn zero economic profit.…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: 1. Consider market adjustment from the short-run to the long-run under a perfectly competitive…
A: Since you posted multiple questions, we will provide you the answer of first question. If you want…
Q: 4. The number of firms that can survive in a very competitive industry in the long run depends on a.…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 28.The following information is available for a company that operates in a perfectly competitive…
A: Here, the given table shows the cost and output information of a firm in the perfectly competitive…
Q: 3. Suppose all firms in a competitive industry are operating at output levels for which P equals…
A: PLEASE FIND THE ANSWER BELOW. COMPETITIVE INDUSTRY: A competitive industry allows firms to freely…
Q: 1-What are conditions of firm equilibrium? 2-what are the possibilities of perfect competition in…
A: Producer equilibrium refers to that level of output where a firm maximises its profits with its…
Q: Question 8 Perfect competition occurs when none of the individual market participants (buyers and…
A: A market is the collection of buyers and sellers. Perfect competition is the market form with a…
Q: 3 examples of perfectly competitive markets and dose these firms profit in long run or short run
A: Perfect competition refers to the type of market structure where the firms are able to sell…
Q: 8. Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute…
A: A perfectly competitive firm will always sell their goods and services at a fixed price decided by…
Q: Question 13 Which of the following is true for a perfectly competitive firm that maximizes profit?…
A: A perfectly competitive firm is the one that competes with many sellers of the homogenous good due…
Q: 2. Discuss the following statement: 'In the real world there is no industry which conforms precisely…
A: here we discuss the following statement as follow;
Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…
A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…
Q: 1) Show the initial market equilibrium price and quantity in a graph for the market of your product…
A:
Q: 30) Which one of the following is true for a perfectly competitive industry? a) there are many big…
A: The market is the collection of buyers and sellers in which they exchange goods and services in…
Q: b. Consider a perfectly competitive firm in the following position: output 4000 units, market $1,…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Refer to Figure #1. The short-run supply curve for a firm in a perfectly competitive market is O the…
A: The short run supply curve of a perfectly competitive firm is the firm's marginal cost on all points…
Q: 10 In the long run a perfectly competitive industry will have all firms making profits O all firms…
A: A perfectly competitive industry is one in which a larger number of sellers are allowed to offer…
Q: Q8. Discuss the differences between short run VS long run Firm Supply in competitive market…
A:
Q: Given a perfectly competitive firm, which of the following statements are true? Select one or more:…
A: Competitors selling similar products in perfect competition. In economic language, this is referred…
Q: 3 examples of perfectly competitive markets and does these firms profit in long run or short run
A: Products and services are exchanged in different markets, such as competitive or anti-competitive.…
Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…
A: In the long-run, all the firm in a perfectly competitive market earns positive economic profit…
Q: 8. (The Short-Run Firm Supply Curve) Each of the following situations could exist for a perfectly…
A: A firm in a perfectly competitive market is one of the many small firms producing and supplying…
Q: Short Questions: 1. What are the three conditions for long-run equilibrium for a firm in perfectly…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: QUESTION 7 (10 points): • Explain the effect of an increase in demand in a perfectly competitive…
A: Short Run - Increase in Demand When market demand increases, the market price of the good rises, and…
Q: 11. The graph below shows the marginal revenue, marginal cost, and average total cost at different…
A: Prices are given for a perfectly competitive firm, and it could earn positive or negative profits…
Q: 8. Which of the following markets comes close to satisfying the assumptions of a perfectly…
A: # A perfectly competetive market structure is characterized by large number of buyers and sellers.…
Q: 20 What is the key characteristic of perfect competition? A One firm sells a highly demanded…
A: Answer- "Thank you for submitting the question but we, are authorized to solve one question at a…
Q: Explain the three possible profit maximizing positions of perfectly competitive firms in the…
A: Profit maximization is that the method by that a corporation determines the evaluation, input, and…
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: You're The Economist: Recession Takes a Bite Out of Gator Profits" in chapter 8. Assuming gator…
A: When demand decreases, market demand curve shifts leftward, decreasing market price (and quantity).…
Q: Q4) Answer the following, providing a graphical illustration along with your answer where necessary:…
A: A perfectly competitive market is the one in which there are many sellers and buyers . Also there is…
Q: 3. Illustrate short run supply curve for a perfectly competitive firm and derive market supply…
A: In economics, the short run refers to the time horizon in which some inputs are variable while the…
Q: Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making…
A: In a circumstance of amazing contest, regardless of whether an organization acquires benefits or…
Q: 2 b. Explain the situation when the firm under perfect competition continues production in the short…
A: Under the perfect competition, firms are price takers. The price of goods and services determined by…
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- Concept: Revenue of a Firm Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive and that the market price for a crate of oranges is $11 per crate. Fill in total revenue, average revenue, and marginal revenue in the table below. (Enter your responses as integers.) Average Marginal Revenue Crates of Market Price Total Revenue Revenue (per crate) $11 Oranges (TR) (AR) (MR) $ 1 11 $ $ 2 11 3 11 4 11 5 11QUESTION 7 (10 points): • Explain the effect of an increase in demand in a perfectly competitive market in the short-run and in the long-run. • More specifically, explain the impact of demand increase on the firm profits and on the number of the firms operating in the market. • Discuss the main assumptions underlying these results. (Hint: You may use graphs to illustrate your answer.)(1) Use the graph to answer the question below. The quantity is measured in thousands of units. What will this firm decide to do in the long run? A-It will stay in the market because the price is above its AVC at its profit-maximizing output. B-It will leave the market because the price is below its ATC at its profit-maximizing output. C-It will increase its price to point B to earn normal profit. D-It will increase its output until its profit-maximizing output level is equal to B. E-Insufficient data to determine. (2) A dairy farmer is operating in a perfectly competitive market. The market price for milk is between the farmer's average variable cost and average total cost at the profit-maximizing level of output. What will the farmer do? A-Produce more milk. B-Produce less milk. C-Shut down in the short run. D-Operate in the short run and leave the industry in the long run. E-Insufficient information to determine (3) A firm operating in a perfectly competitive market cannot…
- 1. Assume you have a perfectly competitive market with two types of firms. The only difference between the two types of firms is that the minimum average cost at which firms of type A can produce is lower than the minimum average cost at which firms of type B can produce. a. Give a graphical example of what the individual long run supply functions of a type A firm and a type B firm may look like. Explain the shape in detail. b. Based on your example, what will the aggregate supply curve of a market with 2 firms, one type A and one type B, look like? Explain the shape in detail. C. Assume now that all potential firms are identical. Evaluate the impact of a demand shock on the long run equilibrium market price and firm numbers. You must use graphical analysis and explain in detail.only typed answer Assume a competitive firm faces a market price of $120, a cost curve of: C = 13q3 + 20q + 500, and a marginal cost of: MC = q2 +20. What is the firm's profit maximizing output level? ?? Units (round your answer to two decimal places) What is the firm's profit maximizing price? ??? (round to the nearest penny) What is the firm's profit? ??? (round to the nearest npenny) In the short-run, this firm should ?? produce or shut down??(Figure: Price and Quantity of Output and Table I) For simplicity, assume that there are only three firms in a perfectly competitive industry; their short-run supply curves are depicted in the graph. At a market price of $40, the industry output is ____. A. 4 B. 1 C. 15 D. 9.5 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Discuss the long-term effects in a perfectly competitive market if an existing firm is making profits or losses Use graph (s) to illustrate your explanations. (Answer "False" or "True" each of the following. Justify by relying on graphical analysis whenever possible. 1.- A company in perfect competition will maximize profits by equating average income to its marginal cost. 2.- For a company in perfect competition, the demand it faces is equal to the marginal product which is constant. plzz ansr first two1.(a) Explain with the help of a graph how a perfectly competitive firm determines its profit-maximizing quantity of output. (b) Explain with the help of a graph the effect of a decrease in marginalcost on the profit-maximizing quantity of output of a perfectly competitive firm.
- M/c question - Micro 29) What is a characteristic of a perfectly competitive market? A. Goods offered for sale are largely the same B. There are not many sellers in the market C. Firms have difficulty entering the market D. Firms are price setters 28) Refer to Table 14-2. At which quantity of output is marginal revenue equal to marginal cost? A. 8 B. 4 C. 6 D. 2Questions: 1) Please give an example of a market that comes close to being considered perfectly competitive. 2) What does it mean when firms in a perfectly competitive market earn $0 in economic profits? Write at least one brief paragraph. In addition, it is required to reply to at least two other students' posts by offering respectful suggestions, comments, or critiques related to the subject matter and their post.2- What is the general decision rule used by perfectly competitive firms to maximize profits? On a graph, indicate the long- and short-run supply curves of the firm. Explain clearly why there is a difference. Why would a firm stay open and take losses in the short-run?