How does a competitive firm determine its profit-maximizing level of output? Explain When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?

Q: If firms in a competitive industry incur an economic profit, what happens to supply, price, output,…

A: Economic profit is defined as difference between revenue that is received from the sale of a good or…

Q: A new korean restaurant opens in a city. People are initially cautious about eating new food items,…

A: Part a) The health report suggest that people should increase the consumption of Korean food. In the…

Q: must each perfectly competitive firm be in equilibrium if the industry is in the long-run…

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

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: If a firm's total revenue is $100, it's total cost is $130, and its total fixed cost is $40. Should…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Shazam, a maker of magic wands, is selling in a purely competitive market.  Its output is 500 wands,…

A: In case of pure competition sellers & buyers are in large numbers & perfectly informed that…

Q: A perfectly competitive firm is currently producing an output level where price is $10.00, average…

A: A Perfectly competitive firm is a price taker and produces at MC=P.

Q: When a competitive firm doubles the amount it sells, what happen to the price of its output and its…

A: In a perfectly competitive market structure there are large number of buyers and sellers selling…

Q: Why would a firm that incurs losses choose to produce rather than shut down

A: Shut down point refers to the point where the firm stops its production process. It is the point…

Q: As we begin to study different market structures, consider a market that is fiercely competitive.…

A: The market structure can be divided into four based on the degree of competition and the type of…

Q: competitive market

A: A. If the price = AC = MC, then the market is competitive and incurring economic loss.

Q: Write True or False and explain briefly 1- Consider a firm in a perfectly competitive market.There…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: g. What is the firm's profit if it shuts down? h. In the long run, should this firm continue to…

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: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Assume that the tofu industry is perfectly competitive and in the long run equilibrium. There is a…

A: find the answer below.

Q: Perfectly competitive firms are price takers. (A) What would happen if a perfectly competitive firm…

A: A perfectly competitive market is one where a firm has no incentive to deviate from market value for…

Q: When will a firm neither enter or exit a competitive market?

A: In competitive market firms are free to enter and exit.

Q: What level of output should this firm produce in the short run? What price should this firm charge…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: What is the profit-maximizing output?       Output:  b. What price will the firm charge?…

A:

Q: Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on…

A: 1. The firm is operating at the point where the marginal revenue equals the marginal cost in the…

Q: How does a competitive firm determines its profit-maximising level of output? Explain. When does a…

A: The competitive market is the type of market structure where there are large number of buyers and…

Q: Suppose the book-printing industry is a competitive market, and it begins with a long run…

A: In following graph, left panel depicts the market equilibrium where demand and supply curves (D0 and…

Q: why does price equal marginal revenue for the perfectly competitive firm? what is the relationship…

A: Perfect competition refers to the type of market organization in which there are many buyers and…

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: In a perfectly competitive market, which of the following will increase the economic profit the…

A: As the demand increases, the demand curve shifts towards right and will intersect the original…

Q: Graph the demand curve for a pure competitive firm, label the graph. What is the relationship…

A: Pure or perfect competition refers to the type of market organization in which there are many buyers…

Q: g. What is the firm's profit if it shuts down? h. In the long run, should this firm continue to…

A: A producer or seller draws out highest amount of profits when its marginal revenue , the…

Q: How would the introduction of legal or technical barrier to entry affect the long-run equilibrium in…

A: *Answer:

Q: What are the long-run market equilibrium price and quantity of hibiscus plants? How many firms…

A:

Q: In the short-run equilibrium of a perfectly competitive market with identical firms that are…

A: Perfect competition is a type of market organization in which there are many buyers and sellers of a…

Q: What are the main characteristics of a competitivemarket?

A: A perfectly competitive market is the one, where there are a large number of firms selling…

Q: There are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a…

A: Demand is the total quantity of products and services for which the customers are ready to pay…

Q: Which of the following would not help a firm to improve its competitive position?

A: Market Positioning:- Competitive positioning is a term used to describe how well a marketing people…

Q: M/c question - Micro 31) Refer to Figure 14-13. When a firm in a competitive market, like the one…

A: Competitive market  is the market where price , marginal Revenue and Average revenue are equal to…

Q: If a perfectly competitive firm operates in the short run but exits the industry in the long run,…

A: A perfect competitor exist the industry when Price < ATC (or TR < TC) and firm is incurring…

Q: Use a graph to demonstrate the scenario where a competitive firm would be earning positive profit in…

A: 1) The firm produces at a price where the industry’s supply is equal to its demand at point e and…

Q: After the graphs: If there were 20 firms in the market, the short-run equilibrium price of copper…

A: The competitive market would result in the equilibrium when the price would be equal to the marginal…

Q: Consider the perfectly competitive market for pineapples, which is in long-run equilibrium. Now…

A: Pure or perfect competition is a hypothetical market structure in which the accompanying models are…

Q: How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a…

A: A competitive firm determines its profit maximizing level of output when P= MR= MC  When the…

Q: Given the zero-profit condition, how do the competitive firms make decision to increase their…

A: Zero-profit point:- Zero-profit point can be defined as the point when marginal cost curve crosses…

Q: In the short-run, competitive firms want to shut down if     P = MC     P = AVC     P > AVC…

A: A perfectly completive market is where several sellers and buyers are involved in the exchange of an…

Q: The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive…

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…

Q: How do firms that compete in four different markets structures determine profitability

A: Four different markets structures:- Perfect competition monopoly monopolistic competition Oligopoly…

Q: Price S=MSC 50 35 25 MR D=MSB Quantity 100 250 350

A: Market structure refers to how distinct industries are split and differentiated based on the degree…

Q: A competitive firm's supply curve is identical to its marginal cost curve. True or false? Briefly…

A: Perfectly competitive market A perfectly competitive market refers to the market in which a firm…

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?