When new firms enter a perfectly competitive market, their entry
will:
a. increase the price of the produc
b. drive down profits of existing firms in the market
c. shift the market supply curve to the left
d. increase demand for the product
"B"
This will reduce the price of the goods and reduce the profit that the existing firms in the market are making, the answer is "B. "
When new firms enter a perfectly competitive market, their entry will: a. increase the price of...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one of the following would not be expected to occur? a. All firms’ economic profits would eventually be driven to zero at equilibrium. b. The equilibrium quantity sold will fall. c. The equilibrium price will fall. d. The supply curve will shift to the right. e. More firms would enter the market. . Which one of the following is not characteristic of a pure monopoly?...
2. In a perfectly competitive market, there are initially economic profits. Firm entry causes the market supply curve to shift rightwards, but the market does not reach its long run state. a. Draw two corresponding graphs, side-by-side, that allustrate this shift. One is the market supply and demand graph, and the other is the profit-maximizing production choice of a typical firm. Using your graph, explain b. How do price and marginal revenue change as firms enter c. How do MC...
Entry into a market by new firms will increase the a. supply of the good. b. profits of existing firms. price of the good d. marginal cost of producing the good Entry into a market by new firms will increase the e supply of the good. b. profits of existing firms. price of the good d. marginal cost of producing the good.
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources, a) this reduces the market price of resources b) this raises the market price of resources c) the market price of resources does not change d) this lowers the ATC curves of individual firms
27. If there is an increase in market demand in a perfectly competitive market, then in the short run a. there will be no change in the demand curves faced by individual firms in the market. b. the demand curves for firms will shift downward. c. the demand curves for firms will become more elastic. d. profits will rise. answer and why. thank you
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...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one of the following would not be expected to occur? A. The supply curve will shift to the right. B. More firms would enter the market C. The equilibrium quantity sold will fall D. The equilibrium price will fall. E. All firms’ economic profits would eventually be driven to zero at equilibrium.
7. When a new firm enters a monopolistically competitive market, the individual demand curves faced by all existing firms in that market will a. shift to the left. b. shift to the right. c. shift in a direction that is unpredictable without further information. d. remain unchanged. It is the supply curve that will shift. why not D??
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...