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. (
Q: 1. In a perfectly competitive market, the marginal : of the firms is horizontal. revenue curve
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- 3 Evaluate the demand curve of firms that operate in3. What is the meaning of 'acceptable loss' for a perfectiý competitive firm ? Draw a graph and explain.5. Economic theory indicates that an unregulated market will move toward "equilibrium" over time. Briefly summarize what this means. One or two paragraphs should be sufficient. Please draw a graph to support your answer.
- 3). DOORDASH How can Data Analytics Improve the advantages DoorDash has on the competition Include such economic ideas such as the Three Inputs we discuss, the Idea of R&D in this process What are two fixed costs for DoorDash and two Variable Costs? What are three Barriers to Entry that limit Perfect Competition in this industry? What are the Determinants of Supply in Economics and how do two of them relate to DoorDash?16 5 Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable (wreaths) Cost (dollars) 5 $14.00 6 - 15.00 7 CALL/M 16.00 8 22.00 9 28.00 10 34.00 wreaths Average Total Cost (dollars) $24.00 23.00 23.00 28.00 34.00 39.00 $ Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths? Marginal Cost (dollars) $20.00 b. What is the profit per unit if the profit-maximizing level of output is produced? $ olo L c. What is the total economic profit generated by producing the profit-maximizing output? $ % Marginal Revenue (dollars) $63.00 63.00 63.00 63.00 63.00 63.00 22.00 23.00 BIEL 63.00 82.00 TAO 84.002. The demand curve facing a competitive firm The following graph shows the daily market for large cardboard boxes in San Francisco. 0123456789104036322824201612840PRICE (Dollars per large box)QUANTITY (Millions of large boxes)DemandSupply Suppose that Talero is one of more than a hundred competitive firms in San Francisco that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Talero must take as given is . Fill in the price and the total, marginal, and average revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day. Quantity Price Total Revenue Marginal Revenue Average Revenue (Boxes) (Dollars per box) (Dollars) (Dollars) (Dollars per box) 0 0 – 1 2 3 The demand curve that Talero faces is identical to which of its other curves? Check all that apply. Marginal revenue…
- 1. The following table shows information on equilibrium price and different costs at the profit maximizing/loss minimizing point for a perfect competitive firm. Equilibrium Price Quantity of output produced $3 60units Total Revenue Average total cost per unit Total Cost Average variable cost Total Fixed cost Profit/Loss $12 $4 (a) Calculate and fill in the missing information of the table. Is the perfect competitive firm incurring a loss or a profit? Based on your calculation state whether the firm should continue in the market or leave the market? (b) Based on your calculation, draw the appropriate diagram with the ATC, MC, AVC, MR and demand curves to represent the above scenario.Which of the following is NOT an expected outcome for a firm in a market where sellers have market power? Select one: a. An inefficiently small output b. Lower costs c. Higher prices d. Larger economic profits2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 90 80 70 50 30 20 Demand 10 0 + 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units) 25 Demand Price (Dollars per unit) 50.00 (?) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. TOTAL REVENUE…
- 1) Use the attached graph #1 to model the following. a. What is the price and quantity of this market? b. What is the profit or loss in this market for this firm? c. Is this a competitive market or monopoly? d. What is the deadweight loss in this market, if any? e. How does a firm decide to increase or decrease output? i. What do they do when marginal revenue is less than marginal cost? ii. What do they do when marginal revenue is more than marginal cost? f. When does a firm decided to shut down verses temporarily stopping production? g. In this market the demand curve is what? i. Short run ii. Long run h. In this market the supply curve is what? i. Short run ii. Long run 2) Use the attached graph #2 to model the following. a. What is the price and quantity of this market? b. Is this a competitive market or monopoly? c. What is the profit or loss in this market for this firm? d. What is the deadweight loss in this market, if any? e. In this market the demand curve is what? i. Short run…1. Suppose the sugar factory’s marginal cost is MCprivate = 200+q and the equilibrium priceof sugar is $600 per ton. How much would the sugar factory produce in competitivemarket? Draw a graph and show the price, marginal cost curve, and equilibriumquantities.1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?