Draw a diagram to show the long run equilibrium condtion of the perfectly competitive firm

Expert Solution

Rahul Sunny answered 6 months ago

1. draw a diagram to show the long run equilibrium condition of the perfectly competitive firm...

1. draw a diagram to show the long run equilibrium condition of the perfectly competitive firm 2. explain three reasons why monopolies arise

Question 1 a. Draw a diagram to show the long run equilibrium condition of the perfectly...

Question 1 a. Draw a diagram to show the long run equilibrium condition of the perfectly competitive firm [5 marks] b. Explain three reasons why monopolies arise [3 marks] c. When does a perfectly competitive firm temporarily shut down production? When does it leave the industry all together? [4 marks] d. What obstacles might a group of oligopolists encounter in forming a cartel? [4 marks]

Draw a graph showing a market and a perfectly competitive firm in long run equilibrium.

Draw graphs showing a perfectly competitive firm and industry in the long-run equilibrium. a. How do...

Draw graphs showing a perfectly competitive firm and industry in the long-run equilibrium. a. How do you know that the industry is in long-run equilibrium? Long-run when quantity demanded=quantity supplied, no entry and not exit as firms are breaking even. (Which holds true when the P=ATC) b. Suppose that there is an increase in demand for this product. Show and explain the short-run adjustment process for both the firm and the industry. Market demand curve shifts to the right. Equilibrium...

1. a. Consider a perfectly competitive firm in the short run. On a diagram, draw the...

1. a. Consider a perfectly competitive firm in the short run. On a diagram, draw the firm's average cost, average variable cost, and marginal cost curves. Briefly discuss the relationship among these curves. b. On your diagram, show how the profit maximizing level of output is determined for this firm, given a market price. Show the firm making a positive profit. c. On your diagram, show total revenue, total cost and profits associated with the production level from part b....

2. (a) “The short-run equilibrium of a perfectly competitive firm is similar to its long-run equilibrium”....

2. (a) “The short-run equilibrium of a perfectly competitive firm is similar to its long-run equilibrium”. Do you agree? Explain your answer (b) Monopolists have adverse effects on the consumer society and should be eliminated”. Discuss. (1200 words)

Diagram a purely (product market) competitive firm in long-run equilibrium. Be sure to show both the...

Diagram a purely (product market) competitive firm in long-run equilibrium. Be sure to show both the market and the representative firm. Next, on the same diagram, show what happens to the market and the representative firm if the market demand for the product falls dramatically, for instance, due to bad press. Briefly explain your conclusions. Please show me your thought process. Please explain it as if you are telling it to someone who has no clue about economics.

In long run equilibrium for a perfectly competitive firm; the firm will produce where A. Marginal...

In long run equilibrium for a perfectly competitive firm; the firm will produce where A. Marginal cost is at a minimum B. Average fixed cost is at a minimum C. Average variable cost is at a minimum D. Average total cost is at a minimum Height of a marginal product product curve shows: A. the additional cost of producing one more unit of a good B. the additional production from producing one more unit of the good. C. the additional...

Which of the following is true of a perfectly competitive firm in long-run equilibrium? A) it...

Which of the following is true of a perfectly competitive firm in long-run equilibrium? A) it will minimize its average total cost B) the market demand curve is horizontal C) the market supply curve is horizontal D) marginal cost is minimized E) it will charge a price above its marginal cost

At long-run equilibrium in a perfectly competitive industry the typical firm is breaking even in an...

At long-run equilibrium in a perfectly competitive industry the typical firm is breaking even in an opportunity cost sense. T/F Perfectly competitive markets include firms that have significant market power, with one typically being the price leader. T/F In perfectly competitive markets, the individual firm’s demand curve is flat, while the market demand curve is typically sloping downward to the right. T/F When a firm maximizes profits, its price is derived from where marginal revenue crosses marginal cost (extend the...

Question