Microeconomics Answers

why a perfectly competitive firm will earn only normal profit in the long-run

Ab limited is a sole manufacturer and supplier of a solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price as he wishes and sell as many units of his products as he wants at that price. Is this correct.?motivate your answer

Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run.

lonelwolf Ltd is the sole manufature and supplier of solar panels in the country.As a result of this the CEO claimed a recent meeting that he can set any price he wishes and sell as many units of his product as he wants at that pric.Is this correct? motivate your answer

Nonjabulo thinks that McDonald’s hamburgers are the best – much better than Steers’ – while Anne cannot tell the difference:
a) Anne’s demand for McDonald’s hamburgers is likely to be more price elastic than Nonjabulo’s.
b) Nonjabulo’s demand for McDonald’s hamburgers is likely to be more price elastic than Anne’s.
c) Anne’s demand for all hamburgers is less price elastic than Nonjabulo’s.
d) Nonjabulo’s demand for all hamburgers is more price elastic than Anne’s

The following graph shows a firm in a monopolistic industry.
a. If the firm aims at maximizing profit, what will be the quantity produced by the firm
and the price it charges?
b. If the firm aims at maximizing revenue, what will be the quantity produced by the
firm and the price it charges?

Given the supply function:
Q = 150 + 5P + 0.1√(2)
Find price elasticity of supply when P = 10

Lonewolf Ltd is a sole manufacturer and supplier of solar panel in the country, as a result of this the CEO claimed in a recent meeting that he can set any price and sell as many unit of his product as he want at that price. Is it possible and why?

Explain using properly diagrams, why a perfectly competitive firm will earn only normal profit in the long-run

Explain using properly labelled diagrams why a perfectly competitive firm will only earn normal profit in the long run