Submit your responses to the following prompts. Using the definition and charact

Submit your responses
to the following prompts.
Using
the definition and characteristics of perfectly competitive industries,
explain why—in the long run—firms earn zero economic profits. Does this
mean that competitive firms earn zero accounting profits? Your response
should be at least 75–150 words (1–2 paragraphs) in length.
Joe’s
Widget Factory operates in a perfectly competitive industry. Joe’s fixed
and variable costs are given in the table below. He is a price taker and
can sell as many widgets as he produces for $10 each. Complete the table
using the provided link and respond to the following questions. Besides
referring to your table to support your answers, include references from
the course materials on profit-maximizing rules for competitive firms. Your
response should be at least 75–150 words (1–2 paragraphs) in length,
including table.
What
is the profit maximizing (or loss minimizing) level of output in the
short run?
What
is the profit maximizing level of output in the long run?
What
are the shut-down prices in the short run and long run?
What
is the firm’s supply curve?
Note: Use this Week 3 Assignment Worksheet to
complete the following table. Be sure to incorporate your table into your
Assignment submission.
Widgets Produced
Fixed Costs
Variable Costs
Total Costs
Average Variable Cost
Average Total Cost
Marginal Cost
Price = MR
Profits
0
25
0
10
1
25
8
10
2
25
15
10
3
25
23
10
4
25
32
10
5
25
42
10
6
25
53
10
7
25
65
10
8
25
78
10
9
25
92
10
Based on your answers to the
previous set of questions, assuming there are 100 identical firms in the
widget industry, construct a table showing the industry supply curve.
Then, explain what you expect will happen over time to the number of
firms in the industry and the equilibrium industry price of widgets. Your
response should be at least 75–150 words (1–2 paragraphs) in length,
including the table.
Note: For each
prompt, be sure to reference at least one scholarly source to support your answer.