In the long run in a purely competitive industry, (select only one correct answer). entry and...
In the long run in a purely competitive industry, (select only one correct answer).
entry and exit of firms can occur.
firms do not have sufficient time to liquidate their assets.
plant size is fixed.
the industry is composed of a specific number of firms.
Homework Answers
The correct choice is that entry and exit of firms can occur only in the long run.
The reason is that long run is the time period in which the plant size can be changed number of firms can be increased and entry and exit is allowed so that all the profirs all are completely vanished and there is absolutely no economic profit .
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In the long run in a purely competitive industry, (select only
one correct answer).
entry and...
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...
A firm in a purely competitive industry has a typical cost structure. The normal rate of...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent b. Is the firm earning an economic profit? (Click to select) If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What...
A firm in a purely competitive industry has a typical cost structure. The normal rate of...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 Invested by its founders Instructions: Enter your answers as whole numbers a What is its percentage rate of return? 10 percent b. Is the firm earning an economic profit? Yes If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What will...
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest tha...
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry,...
Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208% last year as demand for corn based ethanol fuel increased. What do you expect to happen in the long run for the corn industry given this recent success? The price per bushel of corn will continue to increase, yielding higher profits. Thus more firms will enter the market indefinitely. Profits will become negative due to over farming, which will result in the...
Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry...
Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because O A. production will only occur along the long-run marginal cost curve for prices above average variable cost. O B. at prices above the minimum long-run average cost of production, firms will exit the industry. O C. production will only occur along the long-run marginal cost curve when profits are earned. O D....
12. In the long run: A. there will be no entry or exit of firms in...
12. In the long run: A. there will be no entry or exit of firms in this industry B. new firms enter the industry and curve A shifts to the right. C. firms exit this industry and curve A shifts to the left. D. new firms enter this industry and curve F shifts to the right. 13. The long-run equilibrium price in this industry will be: A. Pi 14. The industry's leng-run supply curve is curve: A. C and the...
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...
Identify whether each statement describes the market period, the short run, or the long run. Output...
Identify whether each statement describes the market period, the short run, or the long run. Output and the number of firms are fixed. Plant capacity is flexible. Firms can enter and exit an industry. Plant capacity and the number of firms are fixed. Firms can employ more labor if needed. short run long run market period
I need help with parts C and F ONLY. c.) In the long run, a firm...
I need help with parts C and F ONLY.
c.) In the long run, a firm operating in a perfectly competitive market will earn zero accounting profit, but can still earn positive economic profit d.) In the short run, a firm should exit the industry if its marginal costs exceeds its marginal revenue e.) In the long run, some firms will exit the market if price is below average total cost. f.) A perfectly competitive firm will consider fixed costs...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent b. Is the firm earning an economic profit? (Click to select) If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 Invested by its founders Instructions: Enter your answers as whole numbers a What is its percentage rate of return? 10 percent b. Is the firm earning an economic profit? Yes If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What will...
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
Suppose that the price of corn, a crop produced in a perfectly (or purely) competitive industry, increased 208% last year as demand for corn based ethanol fuel increased. What do you expect to happen in the long run for the corn industry given this recent success? The price per bushel of corn will continue to increase, yielding higher profits. Thus more firms will enter the market indefinitely. Profits will become negative due to over farming, which will result in the...
Explain why the industry supply curve is not the long-run industry marginal cost curve. The industry supply curve is not the long-run industry marginal cost curve because O A. production will only occur along the long-run marginal cost curve for prices above average variable cost. O B. at prices above the minimum long-run average cost of production, firms will exit the industry. O C. production will only occur along the long-run marginal cost curve when profits are earned. O D....
12. In the long run: A. there will be no entry or exit of firms in this industry B. new firms enter the industry and curve A shifts to the right. C. firms exit this industry and curve A shifts to the left. D. new firms enter this industry and curve F shifts to the right. 13. The long-run equilibrium price in this industry will be: A. Pi 14. The industry's leng-run supply curve is curve: A. C and the...
Identify whether each statement describes the market period, the short run, or the long run. Output and the number of firms are fixed. Plant capacity is flexible. Firms can enter and exit an industry. Plant capacity and the number of firms are fixed. Firms can employ more labor if needed. short run long run market period
I need help with parts C and F ONLY.
c.) In the long run, a firm operating in a perfectly competitive market will earn zero accounting profit, but can still earn positive economic profit d.) In the short run, a firm should exit the industry if its marginal costs exceeds its marginal revenue e.) In the long run, some firms will exit the market if price is below average total cost. f.) A perfectly competitive firm will consider fixed costs...
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