Q: what is difference between perfect and pure competition? Highlight the assumptions of perfect…
A: Pure Competition is a subpart of perfect competition Pure competition is a market situation where…
Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that
A: The market is a location where the transaction of services and commodities takes place. It is…
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: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…
A: In a perfectly competitive market, there will be a large number of sellers, which means that a…
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: In perfect competition, why do firms act as price takers? What happens if they charge a different…
A: In a perfect competitive market, the firm will earn a super normal profit in the short run,…
Q: Using diagrams, explain why a perfect competition firm can only make a normal profit in the long…
A: The perfect competition is the Market where there are large number of buyers and sellers who deals…
Q: If Fatimah's Bee Farm is a perfectly competitive firm, the demand for Fatimah's honey has? 1. Zero…
A: Perfect competition refers to the market structure in which there are many buyers and sellers of a…
Q: If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you…
A: Any manager worth his salt would aspire to maximize profits and minimize losses. When the total…
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: 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: Why does a purely competitive firm not charge price above the market price? Why does it not charge…
A: In a perfect competition market structure, there exist a large number of buyers and a large number…
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: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…
A: Perfect competition refers to the type of market organization in which there are many buyers and…
Q: The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has…
A: The profit-maximizing output level is acquired at the intersection of the marginal cost and marginal…
Q: Why do you think a firm in a perfectly competitive industry does not have market power?
A: The market is a location where the transaction of services and commodities takes place. It is…
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: Explain the condition when an imperfectly competitive firm earns an abnormal profit with the help of…
A: Meaning of Monopoly: The term monopoly refers to the situation under which there is only an…
Q: In the long-run, a perfectly competitive firm will earn what kind of economic profit?
A: In the long run, a perfectly competitive firm will earn normal/zero economic profit.
Q: What is the shape of the demand curve faced by a firm under perfect competition?
A: Perfect competition, according to economic theory, occurs when all companies sell identical items,…
Q: Explain how a firm would maximise its profit, assuming that it faces conditions of perfect…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Under Perfect Competition, firms only make normal profit in the long run. Elaborate
A: In the long term, all production components are interchangeable. Free entrance and departure, as…
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: Perfect Competition; How can the demand curve facing the firm be horizontal if the markket demand…
A: Perfectly competition is characterized by the presence of large number of buyers and sellers. 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: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. Label…
A: A market is a place where the buyers and the sellers interact with each other and the exchange of…
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: why does a purely competitive firm not charge a price below the market price?
A: A purely competitive firm is in the market with the following assumptions: 1. Identetical products…
Q: equilibrium
A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…
Q: State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling…
A: The market structure can be divided into four based on the degree of competition and the type of…
Q: Graphically explain the profit maximization condition of a perfect competitive firm.
A: In the perfectly competitive market, a firm experiences a situation that the average revenue will be…
Q: Why is a firm in a perfectly competitive market called a price taker? How does a firm in perfect…
A: Price taker: It means a person or company accepting the prevailing prices in the market and unable…
Q: At the point of equilibrium of firm (under perfect competition)
A: To find: What happens at point of equilibrium of firm.
Q: At the profit-maximizing output level, what will be the relationship between the perfectly…
A: Perfect competition: Perfect competition is a market structure where exists a large number of…
Q: Why does a purely competitive firm not charge price above the market price?
A: In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…
Q: What is the meaning of ''acceptable loss'' for a perfectly competitive firm? Draw a graph and…
A: Acceptable loss means the loss which has to be accepted.This happens generally in perfectly…
Q: Illustrate and fully discuss the derivation of the demand curve for a perfectly competitive firm
A: Perfect Competition Conditions An economic examination of a company's production decisions considers…
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: What is Perfect competition?
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: . At the point of equilibrium of firm (under perfect competition)
A: To find : What happens at point of equilibrium of firm.
Q: What is the shape of the demand curve faced by the perfectly competitive firm? Explain your answer…
A: Perfect competition is the type of market structure in which there are many buyers and sellers of a…
Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC 10…
A: Profit is maximized at a point where MR is equal to MC.
Q: In a perfectly competitive market, firms:
A: When there are large number of buyers and sellers in the market striving for a product then there…
What is the shape of the
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- What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity of output?When will a firm enter a competitive market?Distinguish the difference between the market demand curve and the demand curve that a particular firm in the industry faces. Why are the two curves different?
