Question

Discuss the long-term effects in a perfectly competitive market if an existing firm is making profits...

Discuss the long-term effects in a perfectly competitive market if an existing firm is making profits or losses (6%). Use graph (s) to illustrate your explanations. (6%)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A firm in a perfectly competitive market is making profits. a. is this the short run...
A firm in a perfectly competitive market is making profits. a. is this the short run or the long run? b. what is likely to happen in the market and to this firm as time goes by?
4. Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new...
4. Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run. (include equations if any)
When a perfectly competitive firm is earning profits in the short run, at the quantity produced,...
When a perfectly competitive firm is earning profits in the short run, at the quantity produced, price > average cost the firm's demand curve slopes downward minimum AVC > price existing firms will exit the market in the long run
State the conditions for a perfectly competitive market firm to halt its production (i) short term...
State the conditions for a perfectly competitive market firm to halt its production (i) short term (ii) Long term?
Illustrate the model of a perfectly competitive firm that is in long-run equilibrium. Your graph should...
Illustrate the model of a perfectly competitive firm that is in long-run equilibrium. Your graph should have the demand curve facing the firm, price, MR, MC, and ATC. Identify the optimal level of output. What is the firm’s profit in the long-run?
1. For a firm in a perfectly competitive industry, short-run and long-run economic profits must be...
1. For a firm in a perfectly competitive industry, short-run and long-run economic profits must be zero. short-run economic profits must be zero. both short-run and long-run economic profits may be negative. short-run economic profits may be positive, but long-run economic profits must be zero. 2. At a market clearing price, the quantity demanded will just equal the quantity supplied. the demand function will shift outward. there will be a tendency for price to rise over time. there will be...
14.   A firm making zero economic profits in the LR is broke.T/F 15.   Economic profits are...
14.   A firm making zero economic profits in the LR is broke.T/F 15.   Economic profits are found by: A.  TR + TC B.  TR - (accounting cost + opportunity cost) C.  TR + accounting cost D.  TC + opportunity cost - accounting cost 16.   A firm in a perfectly competitive industry is making losses. Thus, it should increase its price above the market price in order to offset losses. 17.   A firm making zero economic profits will need to close down and then eventually...
A firm sells its product in a perfectly competitive market where firms charge a price of...
A firm sells its product in a perfectly competitive market where firms charge a price of $80 per unit. The firm’s cost are: Total Costs: C(Q) = 40 – 8Q + 2Qsquare Marginal Costs: MC(Q) = – 8 + 4Q a) How much should the firm produce in the short run (to maximize profits)? b) What are the firm’s short run profits or losses? (Profits = Revenue – Total Costs) c) What changes can be anticipated in this industry in...
32.   The relationship that indicates that the perfectly competitive firm in long-run equilibrium is economically efficient...
32.   The relationship that indicates that the perfectly competitive firm in long-run equilibrium is economically efficient is that A.   long-run marginal cost equals long-run average cost at long-run average cost’s lowest value. B.   the typical firm earns neither economic profits nor economic losses. C.   marginal benefit equals long-run marginal cost. D.   demand equals marginal revenue equals average revenue equals price. 33.   The perfectly competitive lobster market is in long-run equilibrium. Following an increase in demand we would expect the typical...
You are the manager and selling your product in a perfectly competitive firm market. Your firm...
You are the manager and selling your product in a perfectly competitive firm market. Your firm and other firms sell the product at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2 Q2. What level of output should you choose to maximize profits? What are your firm’s short run profits? What will happen in your market in the long run? Explain.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT