In a perfectly competitive market... Group of answer choices It will eventually reach long-run equilibrium. Economic profits will be driven down to zero in the short run Firms will compete for business by setting different prices at or above the prevailing equilibrium price A few firms will dominate the market share.

In a perfectly competitive market... Group of answer choices It will eventually reach long-run equilibrium. Economic profits will be driven down to zero in the short run Firms will compete for business by setting different prices at or above the prevailing equilibrium price A few firms will dominate the market share.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

What determines the extent of competition in a market? How much the price decreases as more firms enter the market How costly it is for a new firm to enter the market The share of market sales each firm provides All of the above
Which of the following is not true for a competitive market? Group of answer choices Firms can earn positive economic profits in the long run Firms sell nearly identical products There are many buyers and sellers Firms expect zero economic long-run profits
Which of the following is a reason why firms in a perfectly competitive market have no influence over price? Barriers exist to enter the market. All firms in the market sell identical products. There are many sellers that produce similar, but not identical, products. Buyers and sellers lack perfect information about the product and pricing.
Assume the firms in a perfectly competitive market are initially incurring economic losses. An increase in supply would cause existing firms' economic losses to decrease. True OR False?
True or False: In a perfectly competitive market, firms have significant market power.
Suppose that we have a perfectly competitive market with inverse market demand P = 1000-10Q and inverse market supply P = 250+5Q. A. What is the equilibrium price and quantity in this market? B. Suppose the market is populated by identical firms whose total costs are TC = 100+4000 + 250² and whose marginal costs are MC = 400 + 50Q. How much output should each firm produce in the short run? C. What are each firm's profits? D. How many firms are there currently in the market? What do you think will happen to the number of firms in the long run?
All buyers in a perfectly competitive market set prices to compete in their market? is it true or false
In a perfectly competitive market, firms that remain in the market in the long run produce at the efficient scale because minimizing costs always maximizes profits. markets are always efficient. their supply curve is horizontal. they are price takers and must make zero profits in the long run.
In perfect competition, each company generates a fraction of the total production so small that increasing or decreasing its production will have a perceptible influence on the total supply and the price of the product. True or false
A product wheat is produced under perfect competitive market structure. The market demand and supply are given by equations below QD = 170, 000, 000 – 10, 000, 000 P QS = 70, 000, 000 + 15, 000, 000 P Find the equilibrium price and quantity. Suppose one firm leaves the market with the supply equation QS = 1000 + 1000P. Then find new equilibrium price and quantity and interpret your results?
In the long run, if price is less than average cost, there is an incentive for firms to exit the market. there is profit incentive for firms to enter the market. the market must be in long-run equilibrium. there is no incentive for the number of firms in the market to change.
change the questions or use different values? Question 1. In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm’s demand curve? Show it on a graph and label the axes showing P and Q