P = MR = MC = ATC...
(In a perfectly competitive industry in the long run equilibrium the economic profit tends to zero and the market price is equal to the marginal cost of production which is equal to average total cost)...
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Apple farmers are in a perfectly competitive industry. If the apple market is in a long-run...
1)In a perfectly competitive industry the market is in long-run equilibrium, when: Group of answer choices a)P=MR=MC=AC b)P=MR=MC<AC c)P=MR=MC>AC d)P>MR=MC=AC 2)In order for a firm producing and selling kitchen tables to be operating at allocative efficiency, when price equals $800, marginal cost must equal _____. Group of answer choices a)$750 b)$800 c)$850 d)$700
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
If a firm operating in a perfectly competitive industry maximizes short-run profits by producing some quantity of output q* > 0, which of the following must be true at that level of output? A) p > MC B) MR > MC C) p ≥ AVC D) All of the above E) B and C only
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...
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...
8. A perfectly competitive firm is earning an economic profit. In the short run it should In the long run it should A. shut down; expand B. produce where MC = MR; leave the industry C. produce where MC = MR; expand production D. shut down; exit the industry 9. In the long-run equilibrium of a competitive market with identical firms, what is the relationship between price P, marginal cost MC, and average total cost ATC? A. P> MC and...
8. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. ATC COSTS (Dollars per pound) AVC MC D 0 Ft 0 3 6 9 12 15 18 21 24 27 QUANTITY OF OUTPUT (Thousands of pounds) 30 The...
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
Name Each producer in this perfectly competitive industry has a long-run MC function of: MC-40-120+ and long-run ATC function: ATC 40-60 (Q)/3. The market demand curve is: D-2200-100P a. What is the long-run equilibrium price in this industry? b. At this long-run equilibrium price, what is the quantity produced by an individual firm? c. How many firms are there in this industry (in the long-run)?
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...