If a perfectly competitive firm decides to operate at a loss in the short run, it will minimize that loss by producing the quantity at which * the ATC is minimized. the AVC is minimized. the MC equals the price. the ATC equals the price. the AVC equals the price.
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- Suppose a perfectly competitive firm's demand curve is below its average total cost curve. Explain the conditios under which a firm continues to produces int he short run.A perfectly competitive firm produces at an output at which marginal revenue is less than marginal cost. To maximize profit, the firm should: O produce more. O maintain its level of output. O produce less. www. If the price of output decreases, the firm's optimal level of output will increase (Click to select) increase *** stay the same decrease Saved KShow the derivation of short run supply curve of a perfectly competitive firm?
- A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the market quantity as the market leavesand then returns to long-run equilibriumFor a perfectly competitive firm, a decrease in the price of the product it sells will, shift the demand curve of its product to the left. the demand curve of its product to the right. Oits MRP curve to the left. O its MRP curve to the right. b and cDuring the summer, Alex runs a mowing service, and lawn mowing is a perfectly competitive industry. In the short run, Alex will shut down if: O the total revenues can't cover variable costs. O the price exceeds the average total cost. O the total revenues can't cover foxed costs. OI the total revenues can't cover total costs.
- Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, what Q would a profit-maximizer choose to produce? (Hint: compute MR and MC at each Q) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, what Q would a profit-maximizer choose to produce? (Hint: compute MR and MC at each Q) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120 Select one: a. 50 b. 40 c. 60 d. 30 e. 20Why is a firm in a perfectly competitive market called a price taker? Why do the price, MR and demand faced by a firm in such a market coincide? Explain. please don,t copy and paste from anywhere. Answer step by step and use graph if possible
- Suppose you are the production manager of a small perfectly competitive firm making a single product. Explain whether each of the following factors does or does not affect the profit maximizing level of output your perfectly competitive firm makes. Is your answer different in the short run compared to the long run. Explain. 1. Employee wages increase 2. Interest rates go down on the loans held by the firm 3. Deamnd for the firm's product increasesDoes a competitive firm’s price equal its marginalcost in the short run, in the long run, or both?Explain.Compact discs are sold in a perfectly competitive market. The current market price of compact discs is $15. If at the current level of production of compact docs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should OA produce fewer compact discs OB. continue producing the current level of compact discs OC. produce more compact discs OD. raise the price of its compact discs *