The 3 conditions of a perfectly competitive firm when it makes a profit, breaks even, loss?
The 3 conditions of a perfectly competitive firm when it makes a profit, breaks even, loss?
Homework Answers
When the firm in the perfectly competitive mark is making a profit is they will be producing at the point were the MC and the price is equal and price will be higher than the ATC.
When the firm is breaking even then also the MC and the price will be equal but the price level in the market will be equal to the the average total cost in the market.
When they are making loss in the market then the price will be lower than the average total cost but more than the average variable cost.
Add Answer to:
The 3 conditions of a perfectly competitive firm when it makes a
profit, breaks even, loss?
A perfectly competitive firm will be willing to produce even at a loss in the short...
A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as Multiple Choice the loss is smaller than its marginal costs the loss is smaller than its total variable costs. price exceeds marginal costs. O the loss is smaller than its total fixed costs.
For a perfectly competitive firm in the short run, if the firm produces the quantity at...
For a perfectly competitive firm in the short run, if the firm produces the quantity at which: \ options: 1) P > ATC, then the firm is profitable. 2) P < ATC, then the firm breaks even. 3) P = ATC, then the firm incurs a loss. 4) P < ATC, then the firm is profitable.
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter...
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
Is it ever better for a perfectly competitive firm to produce output even when it is...
Is it ever better for a perfectly competitive firm to produce output even when it is losing money? If so, when?
3. Unlike a perfectly competitive firm, the monopolistic competitive firm is able to (a little) control...
3. Unlike a perfectly competitive firm, the monopolistic competitive firm is able to (a little) control price. Discuss, why, the position of the firm in the long run, is similar to that of a perfectly competitive one. 4. List the characteristics of a monopolistically competitive market structure. 5. Describe the firm's decision in choosing the profit maximizing or loss minimizing level of output. Illustrate.
Price, Costsin dollars AVC Output If the price in the market is $3, the perfectly competitive...
Price, Costsin dollars AVC Output If the price in the market is $3, the perfectly competitive firm depicted in the graph above: O breaks even O earns a profit O Incurs a loss and cannot cover its variable costs O incurs a loss but can still cover its variable costs and some of its fixed costs 2019 McGrawl Education
4. Short-run profit maximization or loss minimization for a perfectly competitive firm Suppose that the market...
4. Short-run profit maximization or loss minimization for a perfectly competitive firm Suppose that the market for cashmere sweaters is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. Profit or Loss PRICE AND COST (Dollars per sweater) 0 10 90 100 20 30 40 50 60 70 80 QUANTITY OF OUTPUT (Sweaters) In the short run, at a market price of $80 per sweater, this firm will choose to...
A perfectly competitive firm will earn a profit in the short run when it produces the...
A perfectly competitive firm will earn a profit in the short run when it produces the profit-maximizing quantity of output and the price is: 1) greater than marginal cost. 2) less than marginal cost. 3) less than average variable cost. 4) greater than average total cost.
The profit-maximizing (or loss-minimizing) perfectly competitive firm will want to produce the quantity of output at...
The profit-maximizing (or loss-minimizing) perfectly competitive firm will want to produce the quantity of output at which the difference between MR and MC is greatest, DO you agree or disagree with this statement? Explain your answer, Would be greatly appreciated answered in 5sentences by your own, not copy and pasted please.
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as Multiple Choice the loss is smaller than its marginal costs the loss is smaller than its total variable costs. price exceeds marginal costs. O the loss is smaller than its total fixed costs.
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
3. Unlike a perfectly competitive firm, the monopolistic competitive firm is able to (a little) control price. Discuss, why, the position of the firm in the long run, is similar to that of a perfectly competitive one. 4. List the characteristics of a monopolistically competitive market structure. 5. Describe the firm's decision in choosing the profit maximizing or loss minimizing level of output. Illustrate.
Price, Costsin dollars AVC Output If the price in the market is $3, the perfectly competitive firm depicted in the graph above: O breaks even O earns a profit O Incurs a loss and cannot cover its variable costs O incurs a loss but can still cover its variable costs and some of its fixed costs 2019 McGrawl Education
4. Short-run profit maximization or loss minimization for a perfectly competitive firm Suppose that the market for cashmere sweaters is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. Profit or Loss PRICE AND COST (Dollars per sweater) 0 10 90 100 20 30 40 50 60 70 80 QUANTITY OF OUTPUT (Sweaters) In the short run, at a market price of $80 per sweater, this firm will choose to...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
Most questions answered within 3 hours.
-
In response to concerns about nutritional contents of fast
foods, McDonald's has announced that it will...
asked 13 minutes ago -
A gun with inertia 5.5 kg fires a 13-g bullet at a stationary
target located 1.0...
asked 14 minutes ago -
A box contains twenty-five screws which are identical in size,
but 13 of which are copper...
asked 16 minutes ago -
“Is it possible that objectively
a product is high quality but subjectively low
quality?”
Please support...
asked 18 minutes ago -
OCHEM LAB
Why does hydration of 2-methyl-3-butyn-2-ol give the ketone,
3-hydroxy-3-methyl-2-butanone (4), rather than the aldehyde,...
asked 27 minutes ago -
A sample of gas at 15 ⁰C and 0.988 atm has a volume of 2.58
liters....
asked 34 minutes ago -
Enzymes are required in retroviruses because the genome
is not used directly as mRNA (T/F)
Please...
asked 33 minutes ago -
An AC generator supplies an rms voltage of 240 V at 50.0 Hz. It
is connected...
asked 46 minutes ago -
Raising taxes on wealthy Americans won’t be enough to deal with the
nation’s budget deficit. Some...
asked 29 minutes ago -
A bacterium (mass = 2.27 x 10−15 kg) in the blood is moving at
0.306 m/s....
asked 32 minutes ago -
look at the Fourth Lateran Council's Canon 18, and argue why a
defendant should not be...
asked 32 minutes ago -
An electron moves at 2.60×106 m/s through a region in
which there is a magnetic field...
asked 44 minutes ago