Suppose a perfectly competitive, increasing-cost industry is in long-run equilibrium when market demand increases. In the long run, a typical firm _____ a.will stop production as total revenue no long...
Suppose a perfectly competitive, increasing-cost industry is in long-run equilibrium when market demand increases. In the long run, a typical firm _____
a.will stop production as total revenue no longer covers the average variable cost of production.
b.experiences the same equilibrium price but a lower average total cost.
c.experiences a lower average total cost and equilibrium price.
d.experiences the same equilibrium price but a greater average total cost.
e.experiences a higher average total cost and equilibrium price.
Homework Answers
Ans) the correct option is e) experiences a higher average total cost and equilibrium price
Since this is an increasing cost industry, there will be higher average total cost and higher equilibrium price in the long run
Add Answer to:
Suppose a perfectly competitive, increasing-cost industry is in long-run equilibrium when market demand increases. In the long run, a typical firm _____ a.will stop production as total revenue no long...
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...
In the long run, all of the firms in a perfectly competitive industry will: exit 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...
1. Suppose the typical firm in a perfectly competitive industry has the following long-run total TC...
1. Suppose the typical firm in a perfectly competitive industry has the following long-run total TC 240Q-6Q2 +0.08Q3 What is the long-run price for product Q?
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
1. Suppose that a perfectly competitive industry is at a long-run equilibrium (each individual firm producing...
1. Suppose that a perfectly competitive industry is at a long-run equilibrium (each individual firm producing a quantity corresponding with minimum average cost). This implies that the following condition holds P = MC = AC. Assume that all firms have identical cost structures and the cost of inputs used in production (such as labor, raw material, intermediate goods, etc.) stays the same as the industry expands or contracts (i.e. constant-cost industry). a. Show with graphs and explain with words what...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry...
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 the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm...
Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm produces 10,000 tablets per month, total costs for this production is $2,000,000, and the minimum of the average variable costs is $75, what price will a. Induce entry into the market? When the price rises above $ b. Cause firms to shut down production in the short run? When the price falls below $ c. Result in firms exiting the market in the long...
29. Assume a perfectly competitive, constant-cost industry is initially in long-run equilibrium. What is the long-run...
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...
Suppose that a particular firm is in a perfectly competitive constant-cost industry. When it is using...
Suppose that a particular firm is in a perfectly competitive constant-cost industry. When it is using the optimal amount of capital for the long-run, total cost is C(q)=1000+(q2/10), ATC(q)=(1000/q)+q/10, and marginal cost is MC(q)=2q/10. This implies that ATC=MC at a quantity of 100 and a per unit cost of $20. 1. At what quantity is average total cost minimized? 2. What is the long-run competitive equilibrium price? 3. If market demand is QD=12,000-200P and short-run market supply is QS=300P, what...
The typical long-run average cost a firm in the perfectly competitive widget market reaches its minimum...
The typical long-run average cost a firm in the perfectly competitive widget market reaches its minimum average cost at $35/unit at 10,000 units. Draw the long-run market supply curve. Assume that factor prices do not change as the industry expands or contracts.
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...
1. Suppose the typical firm in a perfectly competitive industry has the following long-run total TC 240Q-6Q2 +0.08Q3 What is the long-run price for product Q?
1. Suppose that a perfectly competitive industry is at a long-run equilibrium (each individual firm producing a quantity corresponding with minimum average cost). This implies that the following condition holds P = MC = AC. Assume that all firms have identical cost structures and the cost of inputs used in production (such as labor, raw material, intermediate goods, etc.) stays the same as the industry expands or contracts (i.e. constant-cost industry). a. Show with graphs and explain with words what...
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...
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...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 8 minutes ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 1 hour ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 3 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 4 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 5 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 7 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 5 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 7 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 7 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 7 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 7 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 7 hours ago