In the long run the perfectly competitive Firm will produce the allocative efficient quantity of a Product and the production efficient quantity of the Product

In the long run the perfectly competitive Firm will produce the allocative efficient quantity of a Product and the production efficient quantity of the Product, although their goal is to produce a profit Maximizing or loss minimizing quantity of a product

Expert Solution

Rahul Sunny answered 2 years ago

1) A perfectly competitve industry acheives allocative efficient in the long run. What does perfectly allocative...

1) A perfectly competitve industry acheives allocative efficient in the long run. What does perfectly allocative mean? A) Production occurs at the lowest average total cost B) Each firm produces up to the point where all scale economiss are exhaused. C) Firms use an input combination that minimizes cost and maximizes output. D) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. 2) In a perfectly competitve...

Explain why a perfectly competitive agricultural firm (a farm) is perfectly efficient in the long run...

Explain why a perfectly competitive agricultural firm (a farm) is perfectly efficient in the long run having achieved allocative efficiency,productive efficiency, and zero economic profit.

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...

1. a. Explain why the long-run product price for a perfectly competitive firm will equal its...

1. a. Explain why the long-run product price for a perfectly competitive firm will equal its minimum average total cost. b. How does the “invisible hand” work in a competitive market system? c. What is the concept of creative destruction? Describe two industry examples and how it has worked over time. d. What economic conditions are necessary to achieve productive and allocative efficiency under pure competition?

In the short run, a perfectly competitive firm will shut down and produce nothing if: a....

In the short run, a perfectly competitive firm will shut down and produce nothing if: a. economic profits equal zero. b. total cost exceeds total revenue. c. total variable cost exceeds total revenue. d. the market price falls below the minimum average total cost.

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

Explain why the long-run product price for a perfectly competitive firm will equal its minimum average...

Explain why the long-run product price for a perfectly competitive firm will equal its minimum average total cost?

The perfectly competitive firm should produce in the a. short run if price is below average...

The perfectly competitive firm should produce in the a. short run if price is below average variable cost. b. long run if price is below average variable cost. c. short run if price is below average total cost but above average variable cost. d. long run if price is below average total cost but above average variable cost. d. long run if price is below average total cost but above average variable cost.

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)

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

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