27. If there is an increase in market demand in a perfectly competitive market, then in...
27. If there is an increase in market demand in a perfectly competitive market, then in the short run a. there will be no change in the demand curves faced by individual firms in the market. b. the demand curves for firms will shift downward. c. the demand curves for firms will become more elastic. d. profits will rise.
answer and why. thank you
Homework Answers
OPTION [ A]
IN THE SHORT RUN MARKET OF PERFECTLY COMPETITIVE MARKET INCREASES OR DECREASES IN DEMAND IN A A COMPETITIVE MARKET WILL CAUSES PRICES AND OUTPRICE TO INCREASES OR DECREASES .IN LONG RUN INCREASES , OR DECREASES IN DEMAND IN A COMPETITIVE MARKET WILL CAUSES INCREASES DECREASES IN OUTPUT
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27. If there is an increase in market demand in a perfectly
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6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is 0(p)9...
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QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a...
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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the
demand curve faced by a perfectly competitive firm is
horizontal
yes
it a true or false question
Class Name Chapter 8 -Micro Indicate whether the statement is true or false. 1. The behaviour of an individual perfectly competitive firm has a definite influence o a. True b. False Tee e a. True b. False 6. The market demand curve in a perfectly competitive industry is downward sl individual perfectly competitive firm is horizontal a. True b. False 7. To...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry supply curve,are positively sloped. C. the short-run D. All of the above E. Only B and C are correct market supply curves are more clastic than the long-run industry supply curvers s3. Assame a perfectly-competitive, increasing-cost industry composed of identical firms is initially in long-run equilibrium. Given a decrease in demand, in the short ran: equilbrium price decreases, equilibrium output increases, the output of...
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...
2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the market supply curve to shift rightwards, but the market does not reach its long run state. a. Draw two corresponding graphs, side-by-side, that allustrate this shift. One is the market supply and demand graph, and the other is the profit-maximizing production choice of a typical firm. Using your graph, explain b. How do price and marginal revenue change as firms enter c. How do MC...
6. Suppose you have a job analyzing a perfectly competitive market. The aggregate demand is 0(p)98 p and the cost function for the firms is Ca)735. Suppose all firms use the same cost function. (a) Setup and solve the profit maximization problem over quantity. Write the quantity an individual firm will produce as a function of the sale price. 3 points) (b) Solve for the price, quantity, and profits for cach individual shop and then also for aggregate quantity in...
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.
An individual firm in a perfectly competitive market will face demand. Upward sloping Perfectly inelastic Perfectly elastic Cannot be determined from the information Downward sloping
the
demand curve faced by a perfectly competitive firm is
horizontal
yes
it a true or false question
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