What's wrong with the following statements? Long run equilibrium for a purely competitive firm shows that...
What's wrong with the following statements? Long run equilibrium for a purely competitive firm shows that in economics, the profit-maximizing interests of entrepreneurs are more highly valued than the interests of consumers and labor.
Homework Answers
Solution:
In the given statement a profit maximization interest of entrepreneurs are more high value is wrong statement. Because in the perfect competition market industry fix the price and farm price takers. in the long run purely competitive market form earn normal profit.
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What's wrong with the following statements? Long run equilibrium
for a purely competitive firm shows that...
A monopolistically competitive sneaker firm is currently in long run equilibrium. Graph the firm in long...
A monopolistically competitive sneaker firm is currently in long run equilibrium. Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit-maximizing price and quantity. The price of rubber decreases. Rubber is a major component in the production of sneakers. Draw a new graph that shows the change in the profit maximizing price and quantity of sneakers. Be sure to shade the area of loss or profit.
1. A monopolistically competitive sneaker firm is currently in long run equilibrium. a. Graph the firm...
1. A monopolistically competitive sneaker firm is currently in long run equilibrium. a. Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit-maximizing price and quantity. b. The price of rubber decreases. Rubber is a major component in the production of sneakers. Draw a new graph that shows the change in the profit maximizing price and quantity of sneakers. Be sure to shade the area of loss or profit. .
2. A perfectly competitive potato farm is currently in long run equilibrium. a. Graph the firm...
2. A perfectly competitive potato farm is currently in long run equilibrium. a. Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit maximizing price and quantity. b. The demand for potatoes increases. Draw a new graph that shows the impact on an individual firm. Be sure to shade the area of loss or profit. c. Draw a new graph that shows how the firm and the industry adjusts to a new...
Which of the following statements is true of a monopolistically competitive firm? a. It produces more...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
Quantity (units per dayl Q.2) The table shows cost data for a purely competitive producer. QuantityTotal...
Quantity (units per dayl Q.2) The table shows cost data for a purely competitive producer. QuantityTotal cost, TC (units per (dollars per hour) hour) 25 35 50 70 95 125 2.1) If a market price is $21, a) what will be the profit-maximizing or loss-minimizing output? and b) what economic profit or loss will the firm have per unit of output? 2.2) According to 2.1), is the firm in long-run equilibrium? Please briefly explain.
Consider the following statements. I. In the long run, every firm in a perfectly competitive industry...
Consider the following statements. I. In the long run, every firm in a perfectly competitive industry will make an economic profit of zero. II. In the short run, every firm in a perfectly competitive industry will make the same economic profit. III. In the long run, firms in perfectly competitive industries must be productively efficient. I and II are true; III is false. I and III are true; II is false. I and III are false; II is true. All...
1) Compared with a purely competitive industry, a monopolist produces a. more output at a lower...
1) Compared with a purely competitive industry, a monopolist produces a. more output at a lower price. b. less output at a higher price. c. more output at a higher price. d. less output at a lower price. 2) Which one of the following statements about monopoly firms and firms in a purely competitive industry is true? a. In the long run, monopoly firms and firms in a purely competitive industry operate at the minimum point of their average total...
Consider a firm in a market that is in a long-run, perfectly competitive equilibrium. If the...
Consider a firm in a market that is in a long-run, perfectly competitive equilibrium. If the firm has total costs of C(q) = 100 +, and the firm selects its quantity in order to maximize its profit, what is the equilibrium market price?
1) The above figure definitely shows a) a long-run equilibrium for a monopolistically competitive firm. b)...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
Suppose in a competitive market, the long-run cost function of a firm is ?(?) = 0.66874?5⁄4...
Suppose in a competitive market, the long-run cost function of a firm is ?(?) = 0.66874?5⁄4 + 1,280 where x is the output. (a) What is the minimum long-run average cost? At what output level is this attained? (b) Suppose all firms are identical, what is the long-run profit of each firm in the competitive market? What is the long-run equilibrium price? (c) Suppose there are 64,000 consumers each with demand function xd(p) = 625/p2 How many firms exist in...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
Quantity (units per dayl Q.2) The table shows cost data for a purely competitive producer. QuantityTotal cost, TC (units per (dollars per hour) hour) 25 35 50 70 95 125 2.1) If a market price is $21, a) what will be the profit-maximizing or loss-minimizing output? and b) what economic profit or loss will the firm have per unit of output? 2.2) According to 2.1), is the firm in long-run equilibrium? Please briefly explain.
Consider a firm in a market that is in a long-run, perfectly competitive equilibrium. If the firm has total costs of C(q) = 100 +, and the firm selects its quantity in order to maximize its profit, what is the equilibrium market price?
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
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