In both price-taker and competitive price-searcher markets, a decrease in market demand will lead to: price higher than marginal revenue when short-run losses are minimized. an increase in the prices firms receive for their products. short-run economic profits and the entry of firms in the long run. output contraction and firms going out of business in the long run.

In both price-taker and competitive price-searcher markets, a decrease in market demand will lead to: price higher than marginal revenue when short-run losses are minimized. an increase in the prices firms receive for their products. short-run economic profits and the entry of firms in the long run. output contraction and firms going out of business in the long run.

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

Chapter12: More Realistic And Complex Pricing

Section: Chapter Questions

Problem 4MC

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(23) Shifts in the aggregate supply curve can be caused by Select one: a. the wealth effect. b. technological innovation. c. the foreign price effect. (24) In a perfectly competitive market, if a firm raises the price of its product from the prevailing market price of $179 to $199, it Select one: a. would likely result in a substantial loss of sales to competitors. b. will likely cause the firm to reach its shutdown point immediately. c. is a sure sign the firm is raising the given price in the market. d. will cause the firm to recover some of its opportunity costs.
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