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In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
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In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
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The demand curve for a perfectly competitive firm
options:
is upward sloping.
is perfectly horizontal.
is perfectly vertical.
maybe downward or upward sloping, depending upon the type of
product offered for sale.
In the short run, the best policy for a perfectly competitive
firm is to
Question 17 options:
shut down its operation if the price ever falls below average
total cost.
produce and sell its product as long as price is greater than
average variable cost.
shut down its...
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1. (5 points) Assume that a perfectly competitive industry is in long run equilibrium. Then an improvement in technology reduces the average total cost and marginal cost of all firnis. In the long run what happens to price, economic profits, and number of firms in the industry? Please give an explanation.
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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...
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¬8) Assume a perfectly competitive industry. In the short run
suppose that the market price for the good is $10. You also know
that the minimum point on the average variable cost curve occurs at
$6 per unit while the minimum point on the average total cost curve
occurs at $11 per unit. From this information you know that in the
short run, firms in this industry ____ and in the long run, holding
everything else constant, there will be...
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The smartphone market is in long-run equilibrium. Then the
demand for smartphones increases.
Describe what happens in the market for smartphones.
In the short-run firms will ___
A. make an economic profit
B. incur and economic loss
C. continue to break even
Some firms will ___ the market, and the market supply curve will
shift __.
A. exit; rightward
B. enter; leftward
C. enter; rightward
D. exit; leftward
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2) Suppose we observe a perfectly competitive industry in long-run equilibrium when there is a permanent decrease in demand for the industry's product. a) Using graphs explain how the industry adiusts to a new long-run equilibriumm. b) What happens to price, quantity, firm profits and the number of firms during the adiustment process?
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Attempts: Keep the Highest: /4 7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average cost (AC), and average variable cost (AVC) curves shown on the following graph 100 60 AVC 0 10 20 3040 50 60 800100 Use the orange points (square symbol) to plot the initial short-run industry supply curve...
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1 Price The figure below captures a firm in a perfectly competitive industry. MC ATC AVC ا أ ا 1 2 3 4 5 6 7 8 Quantity Suppose the current price is $6. What will happen in the long run? O Nothing will happen in the long run. The firm is earning zero economic profit. O Since the firm is earning a positive economic profit, there is an incentive for new firms to enter the industry in the long...
In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
1. (5 points) Assume that a perfectly competitive industry is in long run equilibrium. Then an improvement in technology reduces the average total cost and marginal cost of all firnis. In the long run what happens to price, economic profits, and number of firms in the industry? Please give an explanation.
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...
2) Suppose we observe a perfectly competitive industry in long-run equilibrium when there is a permanent decrease in demand for the industry's product. a) Using graphs explain how the industry adiusts to a new long-run equilibriumm. b) What happens to price, quantity, firm profits and the number of firms during the adiustment process?
Attempts: Keep the Highest: /4 7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average cost (AC), and average variable cost (AVC) curves shown on the following graph 100 60 AVC 0 10 20 3040 50 60 800100 Use the orange points (square symbol) to plot the initial short-run industry supply curve...
1 Price The figure below captures a firm in a perfectly competitive industry. MC ATC AVC ا أ ا 1 2 3 4 5 6 7 8 Quantity Suppose the current price is $6. What will happen in the long run? O Nothing will happen in the long run. The firm is earning zero economic profit. O Since the firm is earning a positive economic profit, there is an incentive for new firms to enter the industry in the long...