Consider the perfectly competitive market for tofu. Many people use tofu as a substitute for meat. Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q, P, and in the market for tofu (in comparison to the starting point) if the price of meat is increasing.
Q: Perfect competition is an extremely rare type of market in the real world. This is because the…
A: It refers to a market condition in which there are a large number of buyers and sellers that are…
Q: When a perfectly competitive market has reached its equilibrium, (Need help? Read chapter 4.3 of the…
A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…
Q: Explain how the long-run equilibrium in a perfectly competitive industry achieves 'allocative…
A: When profit-maximizing companies in perfectly competitive markets combine with utility-maximizing…
Q: Describe any four requirements for a perfectly competitive goods market
A: A perfectly competitive market refers to the place where sellers charge the same price from buyers…
Q: How would you describe the demand curve for the purely competitive firm? For the industry?
A: Purely competitive firms are characterised by being price takers where decisions are made…
Q: Malaysia is the world's largest producer of rubber gloves. The Rubber gloves industry is perceived…
A: Short run refers to a time period in which at least one factor of production is fixed, while other…
Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…
A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…
Q: Use Table: Cherry Farm. If Hank and Helen have one of the 100 farms in the perfectly competitive…
A: Perfect competition is an ideal type of market structure where all producers and consumers have full…
Q: There is equilibrium in the purely competitive market for oranges, and the optimal amount of oranges…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: When might a competitive firm shutdown in the short run and exit the market in the long run?
A: When a perfectly competitive firm finds itself in shutdown, that is, its market price is equal to…
Q: Hill Mc Graw Hill Micro- Perfect Competition Corn Market: High Price Наpрy Economics Corn Market:…
A: * In a perfectly competitive market, the price determined by the industry with the help of demand…
Q: Which of the following conditions describe a perfectly competitive market?
A: Perfectly competitive market is a rare type of market which is difficult to find in the real…
Q: What are the characteristics of a perfectively competitive market?
A: There are different market structures with different characteristics.
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: If new technology in a perfectly competitive market brings about a substantial reduction in costs of…
A: The term "perfect competition" refers to a fictional market structure in which all suppliers are…
Q: The long -run supply curve for gem diamonds is positively sloped because increases in diamond output…
A: In the perfect competition,products are identical. If people no longer want to buy diamond rings…
Q: What assumptions are necessary for a market to be perfectly competitive? Explain why each of these…
A: ANSWER When the consideration of the all questions had been analysed and there had been that…
Q: Use a graph to demonstrate the circumstances that would prevail in a competitive market where firms…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: What are the Characteristics of a Purely Competitive Market?
A: Characteristics of a Purely Competitive Market: The Purely competitive market is the market…
Q: Does a competitive firm’s price equal its marginalcost in the short run, in the long run, or…
A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…
Q: Long-run equilibrium in perfectly competitive markets meets two important conditions: allocative…
A: Answer- Need to find- Long-run equilibrium in perfectly competitive markets meets two important…
Q: Is the perfectly competitive market model realistic? If not, why do we want to study the perfectly…
A: Perfect competition is a market model that assumes a large number of firms produce identical goods…
Q: an excess profit be earned in perfectly competitive markets in the long run. Explain.
A: Perfect competition refers to the market where there is large number of buyers and sellers who deal…
Q: Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price…
A:
Q: List the requirements for a perfectly competitive goods market.
A: For a particular production process, there has to be some factors of production available. For…
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: Suppose a corn dog stand market is perfectly competitive and in long-run equilibrium. One day, the…
A: Supply refers to the amount of goods that producer willing to and able to produce at particular…
Q: If a perfectly competitive market is in long-run equilibrium, then the market is: productively…
A: Perfect competitive firm is the one which contains a lot of sellers, each of which sells the same…
Q: In a perfectly competitive firm, firms always operate at the lowest per unit cost. true False An…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A new korean restaurant opens in a city. People are initially cautious about eating new food items,…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: What are the five features of a perfect market competitive?
A: There are many market structures in the economy. Some of them are, perfect competition, monopoly,…
Q: Economics Explain (in detail with example) three assumptions for the perfectly competitive market.
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: Productive efficiency and allocative efficiency are two concepts achieved in the long run in a…
A: Perfect competition is a competition where the firms in the market are price takers and have no…
Q: Draw a long-run supply curve for a competitive market with identicalfirms, and describe its…
A: The long‐run market supply curve is found by examining the responsiveness of short‐run market supply…
Q: Meow Chow sells cat food in a perfectly competitive market and has the following cost curves:…
A: The firm produces at MC=P or the nearest lower MC P=0.63 and MC=0.6
Q: Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the…
A: The change in total cost to change in output is known as marginal cost. The marginal cost is the…
Q: Predict and explain the long run equilibrium of a firm operating in a perfectly competitive market?
A: The structure of the market where there are a large number of buyers and sellers selling homogenous…
Q: In the long run equilibrium of a competitive market with identical firms, what is the relationship…
A: The firms are identical and in the long-run equilibrium of a perfectly competitive market, the…
Q: In a perfectly competitive market all producers sell
A: Firms under perfect competition cannot influence the price at which goods and services are sold in…
Q: A single firm in a perfectly competitive market is relatively small compared to the rest of the…
A: In the ‘perfect competition(PC)’ all firms sell ‘identical products’ that are homogeneous. Here all…
Q: Does a competitive firm’s price equal its marginal cost in the short run?
A: A competitive firm is one that produces and sells output in the market with many sellers who offers…
Q: The market supply curve in a perfectly competitive market is typically?
A: A firm in a perfectly competitive market is a price taker. It has a supply curve which is the rising…
Q: In the long run, a perfectly competitive firm can
A: The ideal kind of market structure is known as "perfect competition," and it occurs when all…
Q: What are the characteristics needed for a perfectly competitive market?
A: In a perfect competitive market, there is a number of buyers and sellers, selling similar products.…
Q: In the short-run, if a perfectly competitive firm chooses to produce, then its profits are maximized…
A: At the marketplace, the profit maximizing output decision is different for a perfectly competitive…
Consider the
Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q, P, and in the market for tofu (in comparison to the starting point) if the price of meat is increasing.
Step by step
Solved in 3 steps with 2 images
- Show what happens in the short run on both graphs when a new medical study shows soybeans to be highly carcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2 to draw a new price line for the firm. On both graphs, indicate the new equilibrium point with point B.There is equilibrium in the purely competitive market for oranges, and the optimal amount of oranges is being produced. Explain if and how the optimal amount of oranges will change if the following events occur: a) New fertilizers increase the yields of orange trees. b) Frost destroys part of the orange crop. c) Frost destroys part of the grapefruit crop. The resulting increase in the price of grapefruits raises the demand for oranges. d) People get tired of oranges.What assumptions in the perfectly competitive market can be used to explain the three conditions that satisfy general equilibrium and pareto optimality. Identify these assumptions and carefully discuss the three (3) conditions for Pareto Optimality in this case.
- Suppose the market for pizza is a perfectly competitive market—that is, sellers take the market price as given. Alex owns a restaurant where he sells pizza. The following graph shows Alex's weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of pizza is $3.00 per slice, as shown by the horizontal black line. From the previous graph, you can tell that Alex is willing to supply his 8th slice of pizza for____each week. Since he receives $3.00 per slice, the producer surplus he gains from supplying the 8th slice of pizza is___. Suppose the price of pizza were to rise to $3.75 per slice. At this higher price, Alex would receive a producer surplus of____from the 8th slice of pizza he sells. The following graph shows the weekly market supply of pizza in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of pizza is $3.00 per slice. Then, use the…Suppose that new uses are discovered for corn. Assume that nothing else haschanged. What do you expect to happen to the price of soybeans. Explain with a supply anddemand diagram for soybeans. For a bonus point, what is the real-world basis for this question? I've already asked this question but the supply and demand diagram was not answered.Suppose the market for quiche is perfectly competitive, so sellers take the market price as given. Hilary manages a restaurant that offers quiche for sale. The following graph plots Hilary's weekly supply curve (orange line). Point A represents a point along her supply curve. The price of quiche is $2.25 per slice, which is given by the black horizontal line. PRICE (Dollars per slice) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 0 Price Supply 2 4 Hilary's Weekly Supply A 6 8 10 12 14 16 QUANTITY (Slices of quiche) 18 + 20 22 24 Using the previous graph, you can determine that Hilary is willing to supply her 6th weekly slice of quiche for $ per slice, the producer surplus earned from supplying the 6th slice of quiche is $ Suppose the price of quiche were to rise to $3.00 per slice. At this higher price, Hilary would receive a producer surplus of $ slice of quiche she sells. Since she receives $2.25 from the 6th
- Suppose she runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear.Consider the market for hamburgers in Dallas, where there are over a thousand burger joints at any given moment. Suppose an innovation in meat processing technology makes it possible to produce more hamburgers at a lower cost than ever before.Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza S0 and label the part at which Pat's supplies some pizza S1.
- Which of the following is an example of a reason why the supply curve for an oil company slopes up? a) Oil is a normal good with lots of substitutes. b) When the price of oil increases, people switch to hybrid cars that use less gasoline, which is made from oil. c) Oil is heavily taxed. d) When the company produces a lot of oil, it has to pay its employees overtime, which increases the marginal cost of making oil. e) Suppliers know that people need to use oil in order to commute to work, so demand is inelasticSuppose cowboy boots and leather vests are complements. If the price of cowboy boots increases significantly, what should we expect to happen to the supply curve for leather vests in the short run? We expect the supply curve to shift right. We shouldn't expect anything in particular to happen to the supply curve. We expect the supply curve to shift left.What are the two essential characteristics of a competitive market?