(1) (B) each firm will earn $500 as economic profit.
total unit sold 100000
no of firm 1000
no of unit produced by each firm = 100000/1000= 100
total revenue = 100*20=2000
cost per unit = 15*100=1500
economic profit = TR- TVC= 2000-1500 = $500
2(D)
reason when some of the firm exit from industry it leads to fall in the quantity of unit and it leads to increase in equilibrium price.
3(A)
DJP c) P3 d) P4 Scenario 1: Perfect Competition. Consider a perfectly competitive market with 1,000...
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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...
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