What is the long run competitive equilibrium equation? When P = _____ = _____ = _____...
What is the long run competitive equilibrium equation?
When P = _____ = _____ = _____ and profits are equal to zero
Homework Answers
Answer
The firm produces at P=MC and the P=MR
and in the long run, the firm earns zero economic profit at the level of output so P=ATC
When P =MC =ATC=MR and profits are equal to zero
Add Answer to:
What is the long run competitive equilibrium equation?
When P = _____ = _____ = _____...
2) Suppose we observe a perfectly competitive industry in long-run equilibrium when there is a permanent...
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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In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
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When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter...
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3. Suppose the market for rolled oats is perfectly competitive and is in a long-run equilibrium....
3. Suppose the market for rolled oats is perfectly competitive and is in a long-run equilibrium. For the following. be sure to carefully label your graphs and use subscripts as we have done in class! You can give your answers for each part on the same graphs. a. Draw the graphs below that illustrate the market and a representative firm in the initial long-run equilibrium (use the subscript 1 to denote each curve). What profits is the representative firm earning?...
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Code for the long run equilibrium o 10. In the short namin a t p timalt market willow 8. Condition for profit maximization of firms in a competitive market: 9. Condition for the long run equilibrium of a competitive market: 10. In the short run, a firm in a competitive market will close when 11. In the long run, a firm in a competitive market will close when 12. Condition for profit maximization of a monopolist:
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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?
29. Assume a perfectly competitive, constant-cost industry is initially in long-run equilibrium. What is the long-run effect of an A. B. increase in demand? P decreases and Q increases. P decreases and Q decreases. C. D. Q decreases but P remains unchanged. Pincreases and Q decreases. E. F. P increases and Q increases. Q increases but P remains unchanged. a perfecetly competitive, decreasing-cost industry is in long-run equilibrium. What is the long-run effect of a decrease in demand? A. P...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
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Code for the long run equilibrium o 10. In the short namin a t p timalt market willow 8. Condition for profit maximization of firms in a competitive market: 9. Condition for the long run equilibrium of a competitive market: 10. In the short run, a firm in a competitive market will close when 11. In the long run, a firm in a competitive market will close when 12. Condition for profit maximization of a monopolist:
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