In the long run with free entry and exit, is the price in a market equal tomarginal cost, average total cost, both, or neither? Explain with a diagram.
Q: What does the demand curve for a perfectly competitive individual seller look like? Explain the…
A: Perfect competition is one of the types of market structures.
Q: Help me answer this review question. Fill in the Blanks. Your firm has a price of $5, an average…
A:
Q: Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive.…
A: The difference is that one will produce in the short run if the price is more than AVC and in the…
Q: Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly…
A: In perfect competition, there are large number of buyers and sellers and each firm sells identical…
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: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…
A: A market or industry in which end numbers of firms compete with similar characterized products is…
Q: the shórt-run and Démand gràphs fór á perfectly competitive market experiencing a profit. In each…
A: In perfect competition, eqm. quantity is found by the point where MC(marginal cost) and P(price)…
Q: Good Grapes is selling grapes in a purely competitive market. Its output is 5,000 pounds, which it…
A: The pure competition consists of a large number of buyers and sellers, having homogeneous products…
Q: Suppose the book-printing industry is competitive and begins in a long-run equilibrium. Then Hi-Tech…
A: The perfectly competitive is the type of firm where there are large number of buyers and sellers.…
Q: Assume that the marginal cost curve is given by MC(qi) = 6 + 4qi. And the average variable cost is…
A: MC = 6 + 4qi AVC = 6 +8qi+ 2qi.
Q: Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate…
A: The firm produces output at a profit-maximizing or loss-minimizing level of output which can be…
Q: and resources must be fully mobile, allowing free entry into and exit from the industry. conditions…
A: Forms of Market Market implies to a place where the trade of goods and services takes place. There…
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: What is Brenda’s break-even price for a dozen of eggs? Explain how you found that answer. What is…
A: It is possible to make money by selling a product, but only after subtracting the expenses of the…
Q: Which of the following scenarios is not consistent with a perfectly competitive market? Choice 1 of…
A: Economists find out 4 types of market structures: (1) perfect competition, (2) pure monopoly, (3)…
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: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…
A: Perfect competition: The market in which competition is at its greatest possible level.
Q: Consider De Virtuose Cupcake, a cupcake shop in a competitive price-searcher market. The following…
A: Answer: Introduction: A competitive price-searcher firm (also called monopolistic competitive firm)…
Q: Explain how market competition affect the mark –up in price setting and the fraction of the marginal…
A: If there is market competition then setting mark-up price will be affected a lot. Let's understand…
Q: (Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple…
A:
Q: Alpha is a price taking firm. At Its currant output level of 100 widgets. Alpha's total revenue is…
A: A price taking firm is one that operates its business in the competitive markets, such that a…
Q: Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate…
A: Sparkle is one of the many firms in market of toothpaste which means it is talking about…
Q: Brown grows peaches in Georgia. Suppose the market for peaches is perfecty competitive and that the…
A: A perfectly competitive firm maximizes profit or minimize losses by producing output at a level…
Q: ssume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm…
A: (a) Market is competitive so a typical firm's demand curve is fixed at market price which means…
Q: Donald is a producer in the perfectly competitive market for cronuts - a pastry that is half…
A: Here we calculate the market price per coconut at when Donald profit is maximized so by using the…
Q: Ramona is an asparagus farmer and the world asparagus market is perfectly competitive. The market…
A: Since you have posted multiple questions, we will solve the first question for you. If you want any…
Q: Consider the market for solar power. Assume the market is perfectly competitive and…
A: In a market, the imposition of tax on related goods will have a significant impact on the demand and…
Q: Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly…
A: Difference between total revenue and total cost gives the economic profit of a firm.
Q: A firm has the demand and total cost schedules given in the following table. If it wants to maximize…
A: Given Total revenue = price × quantity Profit = Total revenue - Total cost Quantity Price Total…
Q: ndustry profits and revenue. (Hint: the supply curve is just the marginal cost) d) Suppose that all…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: In competitive markets economic profit becomes zero in the long-run. However, it is also possible…
A: Accounting profit: Accounting profit is obtained by deducting the total explicit cost from the the…
Q: Assume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical…
A: a) The graph below shows Grande's demand curve along with the cost curves. QG is the profit…
Q: Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The…
A: Given, the market for tilapia, there are two producers. a) At market price, P = $2.50, Ripple rock…
Q: How do you find Profit maximization using total cost and total revenue curves in a price takers…
A: Answer: Note: since you have mentioned curves so here I am explaining it graphically. In perfect…
Q: The accompanying graph depicts the Marginal Cost (MC), Average Cost (AC), Marginal Revenue (MR), and…
A: Perfect competition refers to the form of market in which there is large numbers of buyers and…
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: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…
A:
Q: In a perfect market the TR and TC create a ___________________breakeven quantity whenever the MC is…
A: In the perfect competetion market, there exist a large number of buyers and sellers. They produce…
Q: Question 5.5. T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000…
A: Ques 5.5)The firm should shut down in the short run since price is less than average variable cost.…
Q: Suppose the book-printing industry is a competitive market, and it begins with a long run…
A: There are two possibilities, since you did not mention if the firm is incurring profit or loss in…
Q: You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table…
A: To complete the table, we first need to calculate Total Fixed Cost (TFC) and Total Variable Cost…
Q: In the short run, the equilibrium price received by the vegetable farmers (operating in a perfectly…
A: The markets are the place where the buyers and the sellers of various goods and services tend to…
Q: 7.3.2 According to the figure below, a firm would shut down in the short run if the price is Price…
A: The shut down price is the minimum price a firm requires remaining open in the short run. That is, a…
Q: Only one firm able to produce profitably in a market given demand and costs describes a ____?
A: A monopoly market's features enable the sole seller both the market operator and the value creator.
Q: Refer to the above diagram for a purely competitive producer. The lowest price at which the firm…
A: Pure competition is a market structure with a broad range of buyers and sellers which is really…
Q: a. Assuming the cookie industry is perfectly competitive demonstrate using market supply and demand…
A: *Answer :-
Q: The table provides data on a market demand schedule (top two rows) and a firm's average and…
A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first…
In the long run with free entry and exit, is the marginal cost, |
Step by step
Solved in 3 steps with 1 images
- What is meant by selling cost? Name one market where selling cost is applicableWhat is the relationship between economies of scale and the level of market competition?Please graph what the market looks like with a short decrease in demand and what one firm looks like with a short run decrease in demand. Please make sure to graph your answer with all necessary labeling.
- The market for fertilizer is perfectly competitive.Firms in the market are producing output but arecurrently incurring economic losses.a. How does the price of fertilizer compare to theaverage total cost, the average variable cost, andthe marginal cost of producing fertilizer?b. Draw two graphs, side by side, illustrating thepresent situation for the typical firm and for themarket.c. Assuming there is no change in either demand orthe firms’ cost curves, explain what will happenin the long run to the price of fertilizer, marginalcost, average total cost, the quantity supplied byeach firm, and the total quantity supplied to themarket.The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.A Wall Street journal headline states: "a nation of snackers snubs old favorite: the beloved cookie" as u.s. consumers adopted more carbohydrate-conscious diets, the number of cookie boxes sold declined 5.4 percent that year, the third consecutive year of decline. a. Assuming the cookie industry is perfectly competitive demonstrate using market supply and demand curves the effect of this decline in demand on equilibrium price and quantity in the short run. b. Assuming a cookie form was in equilibrium before the change in demand, and it is a constant-cost industry, demonstrate the effect of the decline in equilibrium price for an individual cookie firm in the short run. c. How might your answer to question "a" if you are considering long run?
- Suppose that the market for air fresheners is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 40 36 Profit or Loss 32 28 ATC AVC MC 4 2 4 6 10 12 14 16 18 20 QUANTITY (Thousands of air fresheners per day) In the short run, at a market price of $20 per air freshener, this firm will choose to produce v air fresheners per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's v would be $ thousand per day in the short run. PRICE (Dollars per air freshener)Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 60 40 ATC 30 20 MC AVC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $45 per sweater, this firm will choose to produce 45,000 sweaters per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $45 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be thousand per day in the short run. PRICE (Dollars per sweater)Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. 10- MC 9- ATC Suppose the market for wheat is perfectly competitive. If the market price is $8 per bushel, then to maximize profits, farmer Smith should produce thousand 8- Price bushels of wheat. (Enter a numeric response using an integer.) 4- 3- 2- 10 20 30 40 Quantity of wheat (bushels per month in 1000s) 50 60 70 80 90 100 Price and cost (dollars per bushel)
- Show in graph a consumers’ surplus when the market is perfectly competitive and when its monoplized.The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current market price for bread is P*= 2.50. Which of the following statements is correct? 8 Price, P (€); cost 4 3.70 2.50 2 0 0 Select one: 20 40 60 80 100 120 140 Quantity of loaves, Q 160 180 O a. The bakery is a price setter and sets its price as 2.50. b. The bakery maximises its profits by supplying 160 loaves. O c. The bakery's profit is 200. Marginal cost curve Isoprofit curve: €200 Isoprofit curve: €80 Firm's demand curve Zero-economic- profit curve (AC curve) 200 O d. The bakery's profit decreases until the quantity is 120, and then increases. e. The marginal cost curve is the bakery's supply curve.Farmer Brown grows peaches in Georgia. Suppose the market for peaches is perfectly competitive and that the market price for a box of peaches is $28 per box. Farmer Brown's marginal cost of production is illustrated in the table. Market Price (per box) $28 Вохes of Marginal Cost (MC) Peaches 28 8.00 2 28 4.00 3 28 12.00 4 28 24.00 5 28 48.00 28 72.00 What price will farmer Brown charge when maximizing profit? Farmer Brown will charge a price of $ per box of peaches. (Enter your response as an integer.) What is farmer Brown's profit-maximizing level of output? Farmer Brown maximizes profit when producingO boxes of peaches. (Enter your response as an integer.)