Homework Answers
The marginal cost is the addition made to total cost when an additional unit of the commodity is produced. So when the avetage wage for the workers increases adding one more worker costs more than the previous, this is an increase in the marginal costs. So when the marginal costs increases total costs also increases and this force the firms to cut back their production. There will be a decrease in the supply, this is a leftward shift of the supply curve.
Ans: Increase in the marginal costs for firms in industry and a leftward shift in the industry supply curve.
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Assume that the average wage of workers increases in a perfectly competitive industry. This change will...
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Concept Question 3.25 In a perfectly competitive industry in the short run, if wages increase, which...
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QUESTION 6 Industry is a perfectly competitive industry. Assume that as a result of changes in...
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37. If every firm in a perfectly competitive industry experiences the same technological improvement, then A....
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to a large number of small perfectly competitive firms. e n perfectly competitive firms and industry...
to a large number of small perfectly competitive firms. e n perfectly competitive firms and industry output will Assume an industry is currently a monopoly and the government breaks it up a. Price will fall increase b. Price will increase: decrease c. Both price: increase d. Both price: decrease Question 4 and industry output will Assume an industry is currently a monopoly and the government breaks it up Wo a large number of small perfectly competitive forms a. Price will...
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QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a...
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Suppose that the market for corn is perfectly competitive. If corn farmers are currently generating losses,...
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QUESTION 6 Industry is a perfectly competitive industry. Assume that as a result of changes in other markets there is a twenty percent increase in the price of variable inputs used by firms in industry Y. After all adjustments have taken place, we would expect the equilibrium price in industry Yto: increase and the number of firms to increase. decrease and the number of firms to increase. increase and the number of firms to decrease. decrease and the number of...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for the labor market and for Cleanit and show each of the following. a. e market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm i. The marginal factor (resource) cost curve, labeled MFC ili. The marginal revenue product curve, labeled MRP iv. The wage paid by the firm, labeled...
37. If every firm in a perfectly competitive industry experiences the same technological improvement, then A. the firm's short-run supply curves will shift to the right. B. the industry's short-run supply curve will shift to the right. C. the industry's long-run supply curve will shift downward or to the right D. All of the above statements are true. E. Only A and B are true. D, a, ap, o, 38. In a perfectly competitive, constant-cost industry, the long-run equilibrium price...
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QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a horizontal supply function. perfectly elastic demand. QUESTION 10 The short-run industry supply curve slopes up because the law of diminishing marginal product applies in the short run. wages increase as the industry increases output. the firms eventually experience diseconomies of scale. the higher price is needed to get more firms to enter the industry.
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