If The Competitive Firm Depicted In This Diagram Produces Output Q It Will

Earn an economic profit. Earn an economic profit.

Sample Final Solutions

100 point if the competitive firm depicted in this diagram produces output q it will suffer an economic loss.

If the competitive firm depicted in this diagram produces output q it will. E the monopolistically competitive firm depicted in the diagram is. If a firm is in a competitive market and produces at q2 its average costs will be ac2. If the competitive firm depicted in this diagram produces output q it will a.

Earn an economic profit. In the long run we should expect. Demand is relatively elastic.

This preview has intentionally blurred sections. Achieve productive efficiency but not allocative efficiency. Firms tot leave the industry market supply to fall and product price to rise.

Refer to the above diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates. Achieve productive efficiency but not allocative efficiency. Suffer an economic loss.

C the firms goal is to charge a high price and make a small profit rather than a low price and no profit. Market it will choose the output where price is equal to marginal cost. D what is the firms total profit or loss at the profit maximizing or loss minimizing quantity.

Suffer an economic loss. Earn a normal profit. C what is the total cost to produce the profit maximizing or loss minimizing quantity.

Achieve productive eﬃciency but not allocative eﬃciency. Earn a normal profit. Of unimpeded entry to the industry.

Sign up to view the full version. B although its average cost of production is lower when the firm produces q g units to be able to sell its output the firm will have to charge a price below average cost resulting in a loss. Refer to the diagram.

The diagrams portray short run equilibrium but not long run equilibrium. For a profit maximizing firm in a perfectly competitive. Refer to the above diagrams which pertain to a purely competitive firm producing output q and the industry in which it operates.

Refer to the above diagram. A purely competitive firm is precluded from making economic profits in the long run because. The diagrams portray long run equilibrium but not short run equilibrium.

Suppose losses cause industry x to contract and as a result the prices of relevant inputs decline. If this competitive firm produces output q it will. Earn a normal profit.

A monopoly can increase output to q1 and benefit from lower long run average costs ac1. If this competitive firm produces output q it will. Pmrar only true in perfectly competitive market 2 condition for profit maximization is mrmc true in any type of market 3 combine these two results together.

Refer to the above diagram. In industries with high fixed costs it can be more efficient to have a monopoly than several small firms. Refer to the above diagram.

B what price will the firm charge to sell the output indicated in question a. The diagrams portray both long run and short run equilibrium.

Supply Curve Of A Firm And Industry With Diagram