Homework Answers
ANswer
In the long run the number of firms decreases, supply decreases,
and price increases.
----------
The perfectly competitive firm in the graph has AVC<P<ATC,
P=MR. The price is between average total cost and average variable
cost. It means the firm is making losses in the short run.
The losses discourage some of the firms in the market, and the
firm's exit in the long run. It decreases the number of firms in
the long run. Decreases market supply in the long run and shifts to
the left which increase the price, in the long run, a long run
price is equal to minimum average total costs.
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MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
Help with #18 please MC (Аус -MRP 18. Refer to the above diagrams which pertain to...
Help with #18 please
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For a perfectly competitive market made up of firms represented in the graph below, what is...
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MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
Help with #18 please
MC (Аус -MRP 18. Refer to the above diagrams which pertain to a purely competitive firm producing output, and the industry in which it operates. In the long run we should expect: A. Firms to enter the industry, market supply to rise, and product price to fall. B. Firms to leave the industry, market supply to rise, and product price to fall. C. Firms to leave the industry, market supply to fall, and product price to...
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Question 1 (1 point) A firm producing a positive output level, covering variable costs but making a loss in the short run O may nonetheless be doing the nest it can with respect to its profits O should exit the industry O should definitely shut down O is not maximizing profits O should either expand or contract its plant size Question 2 (1 point) The perfectly competitive firm's profits can be calculated as O (MR-ATC)Q O (P-AVC-AFC)Q....
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...
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