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A: The statement is false.
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A: Average variable cost is given by AVC =TVCq
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A:
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Q: It is difficult for firms to enter and exit a perfectly competitive market. True False
A: In perfect competition, there are many firms selling identical goods.
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A: In order to answer this question, it is imperative to understand the concepts of breakeven and…
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A: We have to find a perfectly competitive firm is making a loss.
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A: Decreasing cost industry is the industry in which per unit cost decrease when output increase
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A: SRTC = 8 +0.5q2 and MC = q TC = FC + VC Here from the total cost we can separate fixed cost and…
Q: The marginal revenue curve for a perfectly competitive firm is
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- Macmillan Learning Consider the graphs of a constant cost industry and a perfectly competitive firm within it. Initially, the industry is in long-run equilibrium at point E, then demand shifts from Demand1 to Demand2. Answer the questions where P is the price, MR is the marginal revenue, AR is the average revenue, MC is the marginal cost, SRATC is the short-run average total cost, and LRAC is the long-run average total cost. Manipulate both of the graphs to reflect the adjustments that yield the long-run equilibrium. Price ($) 10 9 8 7 6 5 4 3 2 1 0 0 10 20 9 8 7 6 XX 5 3 MC 2 1 E 60 30 40 50 Quantity (in thousands) The demand shift results in 70 Supply a short-run economic loss for the firm. Demand1 Demand2 10 80 90 100 0 0 10 20 SRATC 30 40 50 60 Quantity 70 80 LRAC P=MR=A 90 1006.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically.6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Kindly see screenshot attached. Please explain with as much detail as possible, using the graph in your answer.
- Draw and describe a diagram representing the cost curves – MC, AC, and AVC – for a profit-maximizing firm under perfect competition. Show U-shaped AC and AVC curves. Label the breakeven and shut down prices. Also, show a price between the breakeven and shut down prices and explain how the firm decides on its profit-maximizing/loss-minimizing output level at that price and show how the amount of profit or loss can be shown in the diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.39) If a perfectly competitive firm operates in the short run but exits the industry in the long run, then the firm's short run condition isA) TR > TVC and TR < TC. B) TR > TC.C) TR < TVC. D) TR < TFC.What type of industry is described by the term "perfect competition"? an industry in which numerous price-taking firms produce identical products an industry in which a few price-taking firms produce identical products an industry in which firms are price takers and compete for market share by varying the qualitative characteristics of products an industry in which numerous firms are price makers and produce identical products 00OO
- In a perfect competitive industryA perfectly competitive industry consists of many identical firms, each with a long-run total cost function of TC = 500Q-20Q^2+0.5Q^3. a. In long-run equilibrium, how much will each firm produce? b. What is the long-run equilibrium price? c. The industry's demand curve is ?? = 48,000 − 60?. How many firms are in the I ndustry? d. If the industry demand decreases to ?? = 30,000 − 80? how will the industry respond?Under perfect competition, each firm is a price taker. Suppose a single seller in the wheat market. The company produces and markets wheats at a Price = $38 per container. The firm’s total costs are given as: TC = 10 +2Q + 3Q2 Week 8 Chapter 8: Managing in Competitive Markets For this week read Chapter 8 INSTRUCTIONS: 1. Answer the following questions and explain your work. 2. Do not attach any other pages. 3. Download, write your answers on this same Question sheet; next, to each question. 4. Don’t write your name 5. Upload in the same drop box for the purpose of making comments 6. Don’t change the questions or use different values? Question Under perfect competition, each firm is a price taker. Suppose a single seller in the wheat market. The company produces and markets wheats at a Price = $38 per container. The firm’s total costs are given as: TC = 10 +2Q + 3Q2 a) Find the Firm’s marginal cost? Show your steps, including graphs. Review additional…
- In Perfect Competition, Demand shifts produce greater price adjustments andsmaller quantity adjustments in the long run than they do in the short run – Justifyyour agreement / disagreement to the statement.A firm operating under perfectly competitive market experience normal profit whenndependent trucking is an industry that can be considered perfectly competitive. Draw a graph showing market supply, market demand, and equilibrium price and quantity. Draw a corresponding graph for the individual firm/trucker using the market equilibrium price and marginal cost curve. If you line up the two graphs horizontally, the equilibrium price should be the same on both graphs. Now suppose that GDP increases as U.S. manufacturers produce more output. What impact will this have on the independent trucking industry in the short run, in terms of the market price, output of an individual firm, and market equilibrium quantity? Explain your reasoning. What impact will the increase in manufacturing output have in the long run? Show graphically and explain your reasoning.