Question

UUS ment_id 1332651_1&course id=_1773666 1&content_ide43267378 18 stepenuh Question completion Status QUESTION 16 In the long run a firm will ext an industry if the market price is less than its break-even price shutdown price marginal cost fixed cost QUESTION 17 Different firms in a competitive industry will have differing shutdown they have different cost curves they are charging different prices they entered the indutry at different times they all have identical cost curves QUESTION 18 An industry's output is produced at the lowest possible cost when firma marginal costs are equal firms minimize the average costs al firms earn the same profit output is evenly divided among the industry firms QUESTION 19 A competitive firm's long run supply curveis horizontal at the firm's break-even price steeper than its long-run marginal cost curve identical to its long run average cost curve more elastic than its short-run supply curve QUESTION 20 A competitive firm wil exit an industry in the long run when the market price falls below its marginal revenue marginal cost average cost average variable cost

Answer 1

16) the correct answer is the shutdown price. Firms to not exit in the short run but they do stop production when the price is less than the average variable cost. in the long run they however leave the market.

17) they have different cost curves. this is because when cost curves are different average variable cost will also vary. accordingly there will be differences in the minimum average variable cost and the shutdown price.

18) when firms minimise their average cost. This is also known as the minimum efficient scale at which the average total cost is lowest

19) last option is correct

20) average variable cost.