A sudden fall in the market demand in a competitive industry leads to a. A short...
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium
b. A market equilibrium price lower than the short run price
c. Some firms exiting the market
d. All of the above
Homework Answers
Answer
Option c
c. Some firms exiting the market
The decrease in demand decreases the quantity and price in the short run which creates a loss for the firms and some firms will exit the market up to the price increase to the level.
Add Answer to:
A sudden fall in the market demand in a competitive industry
leads to
a. A short...
5 A sudden rise in the market demand in a competitive industry leads to A short...
5 A sudden rise in the market demand in a competitive industry leads to A short run market equilibrium price higher than the original equilibrium price A short run economic profit Entry of new firms into the market All of the above A sudden decrease in the market demand in a competitive industry leads to losses in the short-run and average profits in the long-run above average profits in the short-run and average profits in the long-run new firms being...
A recent medical study shows that peanuts are one of the leading causes of high cholesterol....
A recent medical study shows that peanuts are one of the leading causes of high cholesterol. This would cause the demand for peanuts to a. Shift to the left b. Shift to the right c. go down the demand curve d. not change Cycling becomes very fashionable with millennials and every millennial wants a bike to be part of the new trend. Simultaneously, the price of the parts needed to make bikes falls. The demand curve for bikes would _________...
QUESTION 35 A firewood supplier has a very seasonal demand for its product. Its transport trucks...
QUESTION 35 A firewood supplier has a very seasonal demand for its product. Its transport trucks Lay idle during the warmer parts of the year. It can exploit economies of scope if a. It merges with a manufacturer of wooden Christmas ornaments b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers c It starts producing other seasonal products that would sell mostly during the warmer months such as rustic...
Short-run and long-run effects of a shift in demand Suppose that the tuna industry is in...
Short-run and long-run effects of a shift in
demand
Suppose that the tuna industry is
in long-run equilibrium at a price of $5 per can of tuna and a
quantity of 400 million cans per year. Suppose the Surgeon General
issues a report saying that eating tuna is bad for your
health.
Part 1) The Surgeon General’s report will cause consumers to
demand: a) more b) less tuna at every price.
Part 2) In the
short run, firms will respond...
Consider a competitive market in which the market demand for the product is expressed as: P...
Consider a competitive market in which the market demand for the product is expressed as: P = 104 - 0.002Q, and the supply of the product is expressed as: P = 4 + 0.0005Q (make sure to count the zeros correctly). The typical firm in this market has a marginal cost of MC = 4 + 0.8q. a. Determine the equilibrium market price and output. Calculate the consumer surplus and the producer surplus at equilibrium in the industry. b. Determine...
37. If every firm in a perfectly competitive industry experiences the same technological improvement, then A....
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...
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of...
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut Question 20 options: A) equals long-run average cost. B) is greater than marginal cost. C) is greater than long-run average cost. D) is greater than short-run average cost. The industry that produces zangs is in long-run equilibrium. Then the demand for zangs increases permanently. As a result, firms in the industry will ________. Some firms will ________ the industry, and the industry...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd = 1000-20P (5pts) Calculate the short run equilibrium price and quantity for each firm.. b. (3pts) Suppose each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
1) Compared with a purely competitive industry, a monopolist produces a. more output at a lower...
1) Compared with a purely competitive industry, a monopolist produces a. more output at a lower price. b. less output at a higher price. c. more output at a higher price. d. less output at a lower price. 2) Which one of the following statements about monopoly firms and firms in a purely competitive industry is true? a. In the long run, monopoly firms and firms in a purely competitive industry operate at the minimum point of their average total...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry...
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...
5 A sudden rise in the market demand in a competitive industry leads to A short run market equilibrium price higher than the original equilibrium price A short run economic profit Entry of new firms into the market All of the above A sudden decrease in the market demand in a competitive industry leads to losses in the short-run and average profits in the long-run above average profits in the short-run and average profits in the long-run new firms being...
QUESTION 35 A firewood supplier has a very seasonal demand for its product. Its transport trucks Lay idle during the warmer parts of the year. It can exploit economies of scope if a. It merges with a manufacturer of wooden Christmas ornaments b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers c It starts producing other seasonal products that would sell mostly during the warmer months such as rustic...
Short-run and long-run effects of a shift in
demand
Suppose that the tuna industry is
in long-run equilibrium at a price of $5 per can of tuna and a
quantity of 400 million cans per year. Suppose the Surgeon General
issues a report saying that eating tuna is bad for your
health.
Part 1) The Surgeon General’s report will cause consumers to
demand: a) more b) less tuna at every price.
Part 2) In the
short run, firms will respond...
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...
1. (18pts) Suppose there are 100 firms in a perfectly competitive industry. Short run marginal costs for each firm are given by SMC = q + 2 and market demand is given by Qd = 1000-20P (5pts) Calculate the short run equilibrium price and quantity for each firm.. b. (3pts) Suppose each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10. Calculate the long run equilibrium price and the total industry output.. (4pts) What is...
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...
Most questions answered within 3 hours.
-
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 17 seconds from now -
Write a Python program that stores the data for each
player on the team, and it...
asked 9 minutes ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 34 minutes ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 23 minutes ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 32 minutes ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 31 minutes ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 31 minutes ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 32 minutes ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 49 minutes ago -
How much money should be invested today in order to have $8340
at the end of...
asked 53 minutes ago -
You are conducting research for a hospital and issue a survey to
patients.
Based on the...
asked 53 minutes ago -
What might be a negative mutation that would hinder the
bug population?
asked 1 hour ago