“Long-term profit maximizing situations of firms competing in perfectly competitive markets are equal to zero profits.”...

“Long-term profit maximizing situations of firms competing in perfectly competitive markets are equal to zero profits.” Please write/analyze/discuss the aforesaid statement.

Expert Solution

Rahul Sunny answered 1 year ago

5. A profit-maximizing firm in a competitive market will earn zero accounting profits in the long...

5. A profit-maximizing firm in a competitive market will earn zero accounting profits in the long run. a. True b. False 6.In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market. a. True b. False 7. In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost. a. True b. False 8. A firm operating in a perfectly competitive market may...

Consider each of the following scenarios for profit maximizing firms operating in perfectly competitive markets. For...

Consider each of the following scenarios for profit maximizing firms operating in perfectly competitive markets. For each firm, state whether the firm should produce nothing, or increase, decrease, or maintain its output level. XYZ Corp. has output of 2000 units, market price = $64, average total cost = $62, average variable cost = $48, and marginal cost = $67. XYZ Corp. has output of 2000 units, market price = $64, average total cost = $70, average variable cost = $66,...

Explain why abnormal profits earned and losses incurred by perfectly competitive, profit-maximizing firms cannot be present...

Explain why abnormal profits earned and losses incurred by perfectly competitive, profit-maximizing firms cannot be present at long-run equilibrium. Explain why in the short run, the perfectly competitive, profit-maximizing firm always produces and supplies that output for which short-run marginal cost equals price. (Ignore the possibility that the maximum profit might be negative.)

In the long-run equilibrium, all firms in a perfectly competitive market earn zero economic profit. Explain...

In the long-run equilibrium, all firms in a perfectly competitive market earn zero economic profit. Explain why this is true using intuition and graphs.

Explain why the firms in a perfectly competitive industry will earn zero economic profits in the...

Explain why the firms in a perfectly competitive industry will earn zero economic profits in the long run. I need the answer in 1 hour, please?

Why will profits for firms in a perfectly competitive industry tend to vanish in the long...

Why will profits for firms in a perfectly competitive industry tend to vanish in the long run? Would this be true of losses also? Why or why not?

6) In the long run the profits for a perfectly competitive firm is theoretically zero (select)...

6) In the long run the profits for a perfectly competitive firm is theoretically zero (select) [accounting, economic] profit(s) because of competition 7) For the P.C. firm in the long run Average Revenue is equal to the: (3 answers!) a) the price b) the economic cost c) the marginal cost d) the explicit cost e) the accounting cost f) the explicit-implicit cost g) the implicit price 8) Karen runs a print shop that makes posters for large companies. It is...

Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit...

Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit maximizing quantity? Explain why a monopoly can make economic losses. Will the monopoly exit the industry if it is making economic losses?

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

Why is there no economic profit for perfectly competitive firms in the long run? Why is...

Why is there no economic profit for perfectly competitive firms in the long run? Why is there no economic loss? Answer this question by using an example of a market or industry where perfectly competitive or close to perfectly competitive firms operate (or run their businesses) in close to 'no economic profit or no economic loss' situation.

Question