Q: Which of the following is NOT an assumption of perfect competition? Select one: a. There are no…
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: In pure competition, the marginal revenue of a firm always equals a. total revenue b. average total…
A: In perfectly competitive market, a firm has perfectly elastic demand curve which means the firm can…
Q: Explain the features of large numbers of the sellers and the buyers in the perfect competition
A: There are many market in economy like monopoly , monopolistic , perfect competition , oligopoly ,…
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: A profit maximizing firm will produce an output, if it chooses to produce, where A marginal revenue…
A: Answer: Correct option: A (marginal revenue equals marginal cost) Explanation: A firm maximizes its…
Q: а. List out the main characteristics of a competitive market
A: A competitive market is one in which no single customer or producer has significant market power.…
Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.
A: In perfect competition, there is homogeneity in the products sold by the consumers. This means that…
Q: Which of the following is not an assumption of perfect competition? (a) There are no restrictions on…
A: Perfect competition is a market situation which rarely exist in practice. It is a market structure…
Q: is walmart an example of perfect competition ? Discuss the product they sell, entry and exit to the…
A: Wal-Mart is not the best example of perfect competition. As it can be configured as an oligopoly.…
Q: Is there perfect competition in the food delivery market? Why and How?
A: Monopoly, Oligopoly, Monopolistic Competitive forces, and Perfect Competition are the four market…
Q: perfectly competitve firms respond to changing market conditions by varying their (choose 1 below)…
A: A totally cutthroat firm can sell as huge an amount as it wishes, as long as it acknowledges the…
Q: What are the three short-run outcomes in the perfect competition? When a firm takes the shut-down…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
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: In perfect competition, a firm can maximize profit by producing at a quantity where price Is lower…
A: In perfect competition there are large number of firms selling identical goods.
Q: Which of the following is not necessarily a characteristic of perfect competition? low pricesa large…
A: The implications of perfect competition are as follows: (i) The price is determined by the forces of…
Q: What are three short-run outcomes in the perfect competition? When a firm takes the short-down…
A: A perfect competition is a market structure in which many vendors and buyers are present. In this…
Q: Under perfect competition, which of the following are the same (equal) at all levels of output? a.…
A: Perfect Competition is the market structure where there are large number of buyers and sellers. They…
Q: When discussing pure competition, the term long run refers to a period of time long enough to allow:…
A: Option ‘c’ is the correct answer. Option ‘c’ - Because Option ‘a’ and ‘b’ both are correct. Hence,…
Q: Are Shoppe and Lazada considered as a perfect competition? Why do you think that is?
A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…
Q: The diagram below depicts the market for smart mobile phones for selected brands. Apple Iphone Price…
A: In a market, the value map is used to define the value of a specific firm in the market on the basis…
Q: Which of the following is within the control of the perfect competitor? the selling price none of…
A: In the perfectly competitive market, it can be seen that the firms have very little or no market…
Q: You observed that in the long run, a profit-maximizing firm chose to exit a market. What can you…
A: There is a difference between the cost function in the short-run and in the long-run due to which…
Q: True/False In Perfect competition market, differentiated goods are sold.
A: # In perfectly competitive market we have many buyer and sellers interacting with each other. There…
Q: What term refers to companies shaping their actions based on what their competitors do? allocative…
A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…
Q: Explain the feature of the large number of the sellers and the buyers in the perfect competition
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: In a market with perfect competition, Prices are set by businesses. businesses confronting an…
A: Technically, perfect competition creates a monopoly that enables a business to set any price because…
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: Please explain the importance of good market research when starting a new business.
A: Introduction: Market research helps you find purchasers for your firm. client behavior and economic…
Q: Why does perfect competitive market need to be maintained?
A: In an economy, a perfectly competitive market is the place where anyone is allowed to enter or exit…
Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
A: Perfect competition is a type of market which has large number of sellers and buyers. All of them…
Q: The decision to continue competing in a market depends upon the answers to the following questions…
A: To sustain in the market ones have to bear the fixed cost in the short run as we know. Compete with…
Q: In perfect competition, price is _____________. increasing. decreasing. none of…
A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.
Q: What determining factor do buyers use to select products in a pure competition market? A. Brand B.…
A: Pure competition is a market system in which several firms compete for the same clients. The optimum…
Q: Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC…
A: A perfectly competitive market is one where there are large number of buyers and sellers. The good…
Q: Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it…
A: Given that the firm is profit maximizing firm so it will produce output Q where its marginal cost…
Q: When price is less than marginal cost, a profit-maximizing producer in perfect competition will:
A: In the case of perfect competition, each firm takes the market price as given and hence produces an…
Q: In the long run, if price is less than average cost, there is an incentive for firms to exit the…
A: The perfect competition is the type of market structure where there are large number of firms and…
Q: Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors…
A: Perfect Competition is a market situation where there are large number of buyer and seller s dealing…
Q: A firm in perfect competition has no influence on market price True False
A: Pure or perfect competition is a market structure which has following features : All firms sell an…
Q: In the perfect competition market structure price is equal to marginal revenue average variable cost
A: Perfect competition refers to a market structure, in which a large number of sellers sell…
Q: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: In Perfect Competition, Demand shifts produce greater price adjustments and smaller quantity…
A: In a perfectly competitive market, it can be seen that the demand and supply of any product have…
Q: Which of the following is not a characteristic of perfect competition? A. Many buyers and many…
A: In a perfectly competitive market, there are many small buyers and many small sellers, each are too…
Q: In perfect competition, the maximum benefit is achieved where the vertical difference between total…
A: Perfect competition is characterized by free entry and exists, no barriers, no transaction costs,…
Q: Which industry approximates the perfect competition among the following? A. Pharmaceuticals…
A: Option (B).
Q: Q2. In Pakistan, there are several farmers in various situations, selling identical products to the…
A: Perfect competition refers to a market structure in which there are a large number of buyers and…
Q: What form of competition best characterizes this market? What characteristics did you identify that…
A: Monopolistic competition: The salient feature of monopolistic competitive market is product…
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- Paulina sells beef in a competitive market where the price is $6 per pound. Her total revenue and total costs are given in the table below. Quantity of beef (lb.) 0 1 2 3 4 A What is the profit-maximizing (or loss minimizing) quantity? B 1 pound 2 pounds 3 pounds Total revenue ($) Total cost ($) 0 4 6 6 12 10 18 15 24 21 D) 4 pounds Profit ($) Marginal revenue ($) Marginal cost ($) Marginal profit ($)For the Water Utility, it costs $50,000 per month to lease the land and equipment for the water treatment facility and pumping station and maintain the water supply system. It costs $10Q to deliver water to households (Q is thousands of gallons). The town’s monthly demand for water is QD = 5000 – 100P, where P is price. Calculate the quantity of water, the price, total revenue, total cost, total profit, marginal revenue, marginal cost, the markup, the profit margin, and marginal profit at unregulated price and quantity of water. What price per gallon will they charge?Paulina sells beef in a competitive market where the price is $8 per pound. Her total revenue and total costs are given in the table below. Quantity of Total revenue Total cost beef (lb.) 0 1 2 3 4 ($) 0 8 16 24 32 ($) 4 8 13 19 27 Profit ($) 0 8 pounds Marginal revenue ($) c. What is the profit-maximizing (or loss-minimizing) quantity? Marginal Marginal cost ($) profit ($) a. Complete the table. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. b. At what quantity does marginal revenue equal marginal cost? pounds A
- Using the graph on the next page, do the following problems: Determine the profit maximizing level of output when the market price for the good is $75/unit. Show this on the graph by making the appropriate drawing (with a straight-edge). Also, write the number (an appropriate estimate should be made) below the graph. • On the graph, show the maximum total profit that can be generated by the firm based on the market price. Do NOT calculate the value - show the appropriate box on the graph. Be careful in your (straight) lines. Be clear as to the part of the graph that represents the profit. Use shading as appropriate. • Below the graph, write the interpretation of the values of the marginal cost (MC) and the average total cost (ATC) at the profit-maximizing level of output; make sure to use all the appropriate names and units. Write the values and interpretations below the graph. • Answer the following questions: If the market price of the good falls, the profit maximizing level of…What is meant by selling cost? Name one market where selling cost is applicablePlease graph what the market looks like with a short decrease in demand and what one firm looks like with a short run decrease in demand. Please make sure to graph your answer with all necessary labeling.
- Microsoft is the only business that sells Computer Operation System in the world. Assuming that Microsoft is maximizing its profit, which of the following statements is true? Select one: a. Microsoft prices will be less than marginal cost b. Microsoft prices will be higher than marginal cost c. Microsoft prices will equal marginal cost. d. Microsoft prices will be a function of supply and demand and will therefore oscillate around marginal costs.Based on Zangwill (1992). Murray Manufacturing runs a day shift and a night shift. Regardless of the number of units produced, the only production cost during a shift is a setup cost. It costs $8000 to run the day shift and $4500 to run the night shift. Demand for the next two days is as follows: day 1, 2000; night 1, 3000; day 2, 2000; night 2, 3000. It costs $1 per unit to hold a unit in inventory for a shift. a. Determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. (Note: Not all shifts have to be run.) b. After listening to a seminar on the virtues of the Japanese theory of production, Murray has cut the setup cost of its day shift to $1000 per shift and the setup cost of its night shift to $3500 per shift. Now determine a production schedule that minimizes the sum of setup and inventory costs. All demand must be met on time. Show that the decrease in setup costs has actually raised the average inventory level. Is this…Elixir Spring's mineral water is unique and highly prized. The firm's total fixed cost is $4,000 a day and its marginal cost is zero. The table shows the market demand schedule for the firm's water. Compare Elixir's profit-maximizing price with the marginal cost of producing the profit-maximizing output. At the profit-maximizing price, is the demand for Elixir's water inelastic or elastic? Elixir's profit-maximizing price Elixir's marginal cost. A. is greater than B. is less than C. equals At the profit-maximizing price, the demand for Elixir's water is A. inelastic B. elastic C. perfectly inelastic D. unit elastic E. perfectly elastic
- Plot the supply and demand curve and find market equilibrium P & Q.Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run?Paulina sells beef in a competitive market where the price is $6 per pound. Her total revenue and total costs are given in the table below. Quantity of beef (lb.) 0 1 2 3 4 Total revenue ($) Total cost ($) 0 4 (A) 1 pound (B) 2 pounds (C) 3 pounds (D) 4 pounds 6 12 18 24 6 10 15 21 What is the profit-maximizing (or loss minimizing) quantity? Profit ($) Marginal revenue ($) Marginal cost ($) Marginal profit ($)