Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 22.3, Problem 1ST
To determine
Effect of earning high profits in the perfect competitive market.
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Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
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Chapter 22 Solutions
Economics (MindTap Course List)
Ch. 22.1 - Prob. 1STCh. 22.1 - Prob. 2STCh. 22.1 - Prob. 3STCh. 22.1 - Prob. 4STCh. 22.2 - Prob. 1STCh. 22.2 - Prob. 2STCh. 22.2 - Prob. 3STCh. 22.2 - Prob. 4STCh. 22.3 - Prob. 1STCh. 22.3 - Prob. 2ST
Ch. 22.3 - Prob. 3STCh. 22.3 - Prob. 4STCh. 22.4 - Prob. 1STCh. 22.4 - Prob. 2STCh. 22 - Prob. 1QPCh. 22 - Prob. 2QPCh. 22 - Prob. 3QPCh. 22 - Prob. 4QPCh. 22 - Prob. 5QPCh. 22 - Prob. 6QPCh. 22 - Prob. 7QPCh. 22 - Prob. 8QPCh. 22 - Prob. 9QPCh. 22 - Prob. 10QPCh. 22 - Prob. 11QPCh. 22 - Prob. 12QPCh. 22 - Prob. 13QPCh. 22 - Prob. 14QPCh. 22 - Prob. 15QPCh. 22 - Many plumbers charge the same price for coming to...Ch. 22 - Prob. 17QPCh. 22 - Prob. 18QPCh. 22 - Prob. 1WNGCh. 22 - Prob. 2WNGCh. 22 - According to the accompanying table, what quantity...Ch. 22 - Prob. 4WNGCh. 22 - Prob. 5WNGCh. 22 - Prob. 6WNGCh. 22 - Prob. 7WNGCh. 22 - Prob. 8WNGCh. 22 - Prob. 9WNGCh. 22 - Prob. 10WNG
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- If you're a manager in a highly competitive business such where should you put your most effort to maximize profit? Pricing or cost cutting?arrow_forwardWhy is perfect competition assumed to be the best market situation in most cases? Draw a graph showing the long run result of perfect competition and explain why it benefits society.arrow_forwardWhich are the most likely to be produced in a perfectly competitive industry?arrow_forward
- Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?arrow_forwardWhat does perfect competition mean and what are the concepts of it?arrow_forwardWhat is meant by a competitive firm? Explain the difference between a firm’s revenue and its profit. Which do firms maximize?arrow_forward
- Write down some examples of industries that are (close to) perfectly competitive. What attributes do they have to be considered perfectly competitive?arrow_forwardIf you are a manager in a highly competitive business such where should you put your most effort to maximize profit? Pricing or cost cutting, please explain?arrow_forwardCan you think of a product that meets at least most of the criteria required for a perfectly competitive market? Which criteria does it fail to meet?arrow_forward
- Why does perfect competitive market need to be maintained?arrow_forwardWhat type of product by individual firms (none, total, some etc) are in a perfect competition and how easy is it for a business to enter and exit the perfect competition market structure?arrow_forwardWhat type of organization is appropriate in the competitive business environment?Please explain with examplesarrow_forward
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