Can you make a profit in a competitive industry? Explain.

Expert Solution

Rahul Sunny answered 2 years ago

true/false explain. Since the firms in a monopolistically competitive industry make zero profit in the long...

true/false explain. Since the firms in a monopolistically competitive industry make zero profit in the long run (same long-run profit outcome as the perfectly competitive market), monopolistically competitive markets are as efficient as perfectly competitive markets.

A monopolistically competitive firm in long-run equilibrium: will make negative profit. will make zero profit. will...

A monopolistically competitive firm in long-run equilibrium: will make negative profit. will make zero profit. will make positive profit. Any of the above are possible. None of the above are possible. The Cournot model of symmetric duopoly suggests that the market equilibrium position is such that: one firm is larger than the other in the final equilibrium and the largest firm produces the largest quantity of output. economic profits are zero for both firms. total industry output is the same...

If (perfectly) competitive firms are price takers, how can such a firm make any economic profit...

If (perfectly) competitive firms are price takers, how can such a firm make any economic profit in the short run? Can such a firm continue to make economic profit in the long run/ Why/how/why not? Explain.

In a capitalist society, it is the mission of private industry to make a profit. The...

In a capitalist society, it is the mission of private industry to make a profit. The more profit made; the better the company can establish competitive advantage. Those who do not pursue profit maximization usually fall out of competition and go out of business. In the apparel industry, approximately 60% of cost of goods sold is in labor. The manufacturing sector of the apparel industry began leaving the United States in pursuit of lower cost labor. They accomplished this by...

A)-For a perfectly competitive industry, as long as an economic profit is attainable, new firms will...

A)-For a perfectly competitive industry, as long as an economic profit is attainable, new firms will enter the market. True False B)- If firms in an industry are experiencing economic losses, firms will ______ the industry and the price of the good will ______. enter; decrease enter; increase leave; increase leave; decrease

Explain how in perfectly competitive markets, profit seeking can be a good thing for the economy...

Explain how in perfectly competitive markets, profit seeking can be a good thing for the economy as a whole. (Hint: specifically think of the long run equilibrium adjustment process and outcome) Explain how in a monopoly market, profit seeking is a bad thing for the economy as a whole.

Would you rather make a profit or make money? Is there a difference? Explain your position...

Would you rather make a profit or make money? Is there a difference? Explain your position and how did you come to your conclusion? In response to at least two of your peers, challenge each other on the assumptions behind their answers AND your own. Do your views differ or coincide, and why do you think that is?

If a firm in a monopolistically competitive industry is profit-maximizing, it should choose its level of...

If a firm in a monopolistically competitive industry is profit-maximizing, it should choose its level of advertising such that the marginal revenue of an additional dollar of advertising: a) Is equal to the elasticity of its demand curve minus 1 b) Is exactly $1 c) Increases revenues by $1 d) Is equal to 1 plus the elasticity of its demand curve e) Is equal to the elasticity of its demand curve

If firms in a competitive industry begin to earn profit in the short run, new firms...

If firms in a competitive industry begin to earn profit in the short run, new firms will enter. This will shift the industry Group of answer choices supply curve to the right, meaning market price will fall. demand curve to the right, meaning market price will rise. demand curve to the left, meaning market price will fall. supply curve to the left, meaning market price will rise.

You have AU$ 1.000.000 Explain how can you make profit using interest arbitrage. Outline various market...

You have AU$ 1.000.000 Explain how can you make profit using interest arbitrage. Outline various market conditions where making profit is impossible.

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