Consider the perfectly competitive market for rice, that is in long-run equilibrium. An emigration wave decreases the number of consumers, many of which like rice. The likely consequence of this in the short run isA decrease in the quantity produced by each firm, but at a higher profit.A decrease in the market price and profits for each firmAn increase in the market quantity, but a decrease in the market priceAn increase in the quantity produced by each firm, but no change in profits

Here, it is given that the market for rice is a perfectly competitive market and operates in the…

Answered: Consider the perfectly competitive…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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Consider the perfectly competitive market for rice, that is in long-run equilibrium. An emigration wave decreases the number of consumers, many of which like rice. The likely consequence of this in the short run is

A decrease in the quantity produced by each firm, but at a higher profit.
A decrease in the market price and profits for each firm
An increase in the market quantity, but a decrease in the market price
An increase in the quantity produced by each firm, but no change in profits

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