Using diagrams, explain why a perfect competition firm can only make a normal profit in the long run.

Q: What is the competitive structure of the firms listed below and why? A restaurant in a small,…

A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…

Q: Explain briefly why a firm under perfect competition is a price taker not a price maker?

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

Q: must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm…

A: The perfectly competitive firm are price takers who accept the industry price. No single firm has…

Q: At what point does a firm in a perfectly competitive industry shut down? Explain with graph.

A: In a perfectly competitive industry, at the profit maximizing level of output, when the market price…

Q: explain the down-sloping and upsloping long run ATC. Why may pure competition earn economic profits…

A: The average total cost (ATC) refers to the cost of a single unit, includes the average variable cost…

Q: The Watts Brewing Company owns valuable water rights that allow it to produce better beer than…

A: Economic profit: The difference between the sales revenue and all input cost plus the opportunity…

Q: What are the major characteristics of a firm competing under conditions of perfect competition?

A: The perfect competition is a market structure which is characterized by the presence of a large…

Q: The diagram below, shows the cost structure for a firm in perfect competition. Assume that the…

A: The market price in a perfect competition market is 12. At this price, MC intersects ATC.  It…

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: What type of product by individual firms (none, total, some etc) are in a perfect competition and…

A: Perfect competition is a market structure in which all producers and consumers have complete and…

Q: What is the shape of the demand curve of a firm under perfect competition

A: # A firm under perfect Competition is a price taker. This is because due to large number of firm's…

Q: Using graph, explain when the firm maximizes its profit under perfect competition?

A: A perfect competition is a market where the firm has a control on quantity of goods to be produced…

Q: Discuss the long-run benefits of running a firm in perfect competition.

A:

Q: R MC AC E Po P = MR = AR C Qo Quantity Revenue and cost

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

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: Explain Long run equilibrium for a perfect competition

A: The long-run equilibrium point for a perfectly competitive market is said to have occurred where the…

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: A perfectly competitive firm showing a profit

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: the shape of the SR supply curve of a perfectly competitive firm with a diagram.

A: the shape of the SR supply curve of a perfectly competitive firm is

Q: Graph the following for a perfectly competitive firm: A graph showing the area of economic profit…

A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…

Q: Explain how the perfectly competitive firm decides whether to operate or shut down in the short run.

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Look at the chart for problem #2 based on perfect competition. The profit that this firm earns when…

A: Below is the given information: TR = P × QMR = TRn-TRn-1∆QATC = TCQMC = TCn-TCn-1∆Q

Q: Explain different possibilities of a firm under perfect competition in short and long run. Explain…

A: Market structure refers to the different characteristics of the markets that differentiate between…

Q: Explain why a fast-food restaurant often displays characteristics of perfect competition.

A: The structure of a market where the consumption or production of goods and services do not tend to…

Q: Using an appropriate diagram, explain how a perfectly competition firm achieves profit- maximising…

A: The structure of the market where there exist many firms who sell homogenous goods to many buyers…

Q: Goldbar is an energy bar firm selling in a perfectly competitive market but is considering the…

A: A theoretical market structure is referred to as perfect competition. There are no monopolies under…

Q: Many firms, especially in perfectly competitive markets, file for bankruptcy every year, yet they…

A: Firms will shut down when their cost exceed revenue and they cannot continue to compete in the…

Q: On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that is…

A: ATC/AC is the average total curve. It is a U shaped curve. AVC is the average variable curve. It is…

Q: Using the model of perfect competition, explain what it means to say, “Too much electricity is…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: Give examples, when the conditions of pure and perfect competition are relatively accomplished.

A: Example when conditions of pure and perfect competition would be accomplished is agricultural…

Q: Using examples, explain the down-sloping and upsloping long run ATC. Why may pure competition earn…

A: In a competitive market there are large number of firms producing identical products thus acting as…

Q: explains why in perfect competition, there are no economic profits or losses in the long run?

A: A market is a place where the buyers and sellers interacts with each other and decides to exchange…

Q: "There are some technologies for which it is impossible to maximize profit in the long run. "…

A: Maximization of profits occur at the point where the marginal revenue and marginal cost are equal.

Q: Explain equilibrium of a firm under perfect competition in long run  Explain its output, profit and…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: Write down some examples of industries that are (close to) perfectly competitive. What attributes do…

A: Perfect competition is a kind of market in which a large number of suppliers of a homogenous…

Q: a) George's hair-cutting business is a profit-maximizing, perfecetly competitive firm. George…

A: Given : Price of haircut=$27 Total cost= $280 (inclusive of Fixed cost=$30) Number of customers per…

Q: Write down the assumptions of perfect competition

A: Basic assumptions of a perfectly competitive market: 1. large number of buyers and sellers - It…

Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…

A: Perfect competition refers to a market situation in which there are many buyers and sellers in the…

Q: Draw a model of a representative individual firm in the market for wheat, i.e. an Australian wheat…

A: Perfect competition market  A perfect competition market is a form of market where there is a large…

Q: Explain perfect competition in detailed explain profit maximization graphically

A: Perfect competition is a type of market which is characterized by a large number of buyers and…

Q: Define a perfect competition market structure?

A: Market structure defines the features of a market in which the buyers and sellers interact to sell…

Q: What is Perfect competition?

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Describe how profits and losses drive the long-run adjustment process of pure competition.

A: Pure competition is a market structure where there are large number of sellers dealing in a…

Q: Explain what so special about perfect competition

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Strictly speaking, pure competition is relatively rare. Then why study it?

A: Pure competition is a business condition where similar goods are sold by a wide number of individual…

Q: What is Perfect competition? (50 words only)

A: A market arrangement in which numerous enterprises provide a homogeneous product is known as perfect…