In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price (P), marginal cost (MC), and average total cost (ATC)?
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In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price (P), marginal cost (MC), and
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- Suppose that as the output of mobile phones increases, the cost of touch screens and other component parts decreases. If the mobile phone industry features pure competition, we would expect the long-run supply curve for mobile phones to be: a. Upward sloping. b. Downward sloping. c. Horizontal. d. U-shaped.According to marginal analysis, a perfectly competitive firm will produce an output level where what is true about its Marginal Revenue and its Marginal Cost?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 not an assumption we make about perfectly competitive markets? a)Firms are price-takers b)Firms sell identical products c)Firms earn positive profit in the short-run but zero profit in the long-run d)Firms can freely enter or exit the market in the long-run e)All of the above are valid assumptionsIn the long run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand price is equal to the minimum of Question 6 options: a) average fixed cost for the marginal firm b) marginal cost of the marginal firm c) average total cost of the marginal firm d) average variable cost of the marginal firmConsider the perfectly competitive market for steak (a normal good). Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q. P, and r in the market for steak (in comparison to the starting point) if income increases. Briefly explain.
- Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.In a perfectly competitive market, which of the following statements is true? Options: A. Firms have some control over the price of their product. B. There are significant barriers to entry for new firms. C. Firms are price takers. D. There is limited competition among firms.) In the long run equilibrium of a competitive market with identical firms, what is the relationship between price ( P ), marginal cost ( MC ), and average total cost ( ATC )? if P > MC and P > ATC. P > MC and P = ATC.
- Firms in a perfectly competitive market are said to be "price takers" - that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfect competitive market, but you are not happy with its price, would you raise the price, even by a cent?How to find the inverse demand equation faced by a perfectly competitive market?Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. Demand will............... b. Profits for chocolate producers in the short run will.............. c. Chocolate producers will .............the market. d. The long-run supply curve will ..................... shift left; increase; enter; shift right shift right; increase; exit; not change shift left; decrease; exit; not change shift right; decrease; exit; shift left
