List the characteristics needed for a perfectly competitive market. Provide a simple explanation of each - your explanation should explain how does that characteristic enable a perfectly competitive firm to form/exisit.

Q: Use a graph to demonstrate the circumstances that would prevail in a perfectly competitive market…

A: A perfectly competitive firm is price taker. The market price it faces is constant. This implies…

Q: In the long-run, any perfectly competitive firm that produces will choose a quantity such that

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: What is the meaning of ‘acceptable loss’ for a perfectly competitive firm ? Draw a graph and…

A: In a perfectly competitive market, there will be a large number of sellers, which means that a…

Q: Can a perfectly competitive firm set its own market price?

A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…

Q: Describe any four requirements for a perfectly competitive goods market

A: A perfectly competitive market refers to the place where sellers charge the same price from buyers…

Q: а. List out the main characteristics of a competitive market

A: A competitive market is one in which no single customer or producer has significant market power.…

Q: Explain the three conditions held at the long-run equilibrium in a perfectly competitive market with…

A: Perfectly Competitive Market:It is a market situation where a large number of firms exist and there…

Q: In the short run, if a competitive firm is making profit, the firm should produce. But if a…

A: A firm incurs losses if the total costs exceed the total revenue. The excess of the total cost over…

Q: • Please explain the difference between the short run and long run equilibrium under a per- fectly…

A: Perfect competition is the market structure which is characterized by a large number of firms with…

Q: When will a firm enter a competitive market?

A: Perfect competition refers to the situation where there are large number of prouder and consumers…

Q: What are the characteristics of a perfectively competitive market?

A: There are different market structures with different characteristics.

Q: Why do you think a firm in a perfectly competitive industry does not have market power?

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Under what conditions should a competitive firm shut down in the short run?

A: In the short term, a corporation that operates at a loss (where the income is less than the overall…

Q: explain three conditions that characterise a perfectly competitive market

A: To promote the trade of products and services, a marketplace where two or more parties could meet.…

Q: Which of the following is true for a perfectly competitive industry?

A: option 3 is rhe correct answer The firm in industry produce standardized products  It's dentical…

Q: equilibrium

A: The equilibrium of the perfectly competitive firm from the equilibrium of the industry is different…

Q: Explain the implications of large number of buyers and sellers in a perfectly competitive market.

A: In a perfectly competitive market structure there are large number of buyers and sellers and all the…

Q: Based on the characteristics of perfectly competitive market explain why firms in this market are…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Comment on the Demand curve of a firm operating in perfectly competitive market

A: Perfectly competitive market has many buyers and sellers and the good being sold is 100% homogenous…

Q: • Please explain why the long run economic profit is zero under a perfectly competitive market in…

A:

Q: If a firm makes zero economic profit, it will exit the market in the long run. Do you agree?…

A: No economic profit is also referred as normal profit. Economic profit is calculated by subtracting…

Q: How does a competitive firm determines its profit-maximising level of output? Explain. When does a…

A: The competitive market is the type of market structure where there are large number of buyers and…

Q: At the profit-maximizing output level, what will be the relationship between the perfectly…

A: Perfect competition: Perfect competition is a market structure where exists a large number of…

Q: Which of the following is most likely to operate under a perfectly competitive market? 1) A…

A: Perfect competition is a market condition there is a large number of buyers and sellers selling an…

Q: Below is a two-diagram model representing a perfectly competitive market and a representative firm…

A: All firms get only normal profit over the long run. A firm can get positive or abnormal profit over…

Q: What are the five features of a perfect market competitive?

A: There are many market structures in the economy. Some of them are, perfect competition, monopoly,…

Q: You are given the following information for a producer of organic grommets in a perfectly…

A:

Q: Explain why P=MC in the short run equilibrium of the perfectly competitive firm, whereas in long run…

A: Economic efficiency includes the allocative (P = MC) and productive (MC = AC) efficiencies. Both…

Q: The market for corn is perfectly competitive and all firms are in long-run equilibrium currently.…

A: If corn is an inferior good, then with rise in income of consumers, they will demand less amount of…

Q: Explain what the long run profit conditions are for a perfectly competitive market

A: Perfectly Competitive Market is the one where there are large number of buyers and sellers, selling…

Q: Can you think of a product that meets at least most of the criteria required for a perfectly…

A: Perfectly competitive market refers to the market which has been characterized by the presence of…

Q: A requirement for a perfectly competitive market is that the sellers sell identical products…

A: The perfect competition is a market condition in which there are many producers and the production…

Q: Illustrate and fully discuss the derivation of the demand curve for a perfectly competitive firm

A: Perfect Competition Conditions An economic examination of a company's production decisions considers…

Q: xplanations.

A: In the long run,the profits and losses under perfectly competitive industry tend to get eliminated…

Q: In a perfectly competitive market ,why does the firm always break even in the long run ? Illustrate…

A: In perfect competition, in the very short run firms experience profits. However, new firms enter…

Q: Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run.

A: There are mainly two types of costs in the process of production.

Q: Use a graph to demonstrate the scenario where a competitive firm would be earning positive profit in…

A: 1) The firm produces at a price where the industry’s supply is equal to its demand at point e and…

Q: Label the curves in the following graph  A. At each market price p1, p2, p3 at what output level…

A: (a) To identify: The labeling of curves in the given diagram and the output levels corresponding to…

Q: Explain how the profit-maximizing rule of setting P = MC leads a perfectly competitive market to be…

A: In a perfectly competitive market, there are large number of buyers and sellers in the market…

Q: Which of the following is true in the long run equilibrium of a perfectly competitive market? O…

A: In the long run equilibrium in perfectly competitive market, firms earn an economic profit of zero.

Q: Refer to the above diagram for a purely competitive producer. The lowest price at which the firm…

A: Pure competition is a market structure with a broad range of buyers and sellers which is really…

Q: In a perfectly competitive market, firms:

A: When there are large number of buyers and sellers in the market striving  for a product then there…

Q: How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a…

A: A competitive firm determines its profit maximizing level of output when P= MR= MC  When the…

Q: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

A: Perfect competition is a market structure that has a large number of buyers and sellers who have…

Q: The market for which product best fits the definitionof a perfectly competitive market?a. eggsb. tap…

A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers…

Q: 1. For each lettered space in the following table, determine the appropriate dollar amount (3) (1)…

A: As there are more than one question, we would be answering the first question only (Question number…