you read in a business magazine that the computer firms are reaping high profits. with the theory of perfect competition in mind what do you expect to happen over time? Complete the following sentences to describe the long run adjustment.
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you read in a business magazine that the computer firms are reaping high profits. with the theory of
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- Using the model of perfect competition, explain what it means to say, “Too much electricity is generated,” or “Too little education is produced.” Would the firm be producing at the bottom of the ATC curve if too much or too little was being produced?”Explain why a company would shut down in the short run.Why do a firm's profit disappear in the long run?
- A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers? Include a detailed set of graphs showing both the market and firm long run equilibration in reaction to the change.What are three short-run outcomes in the perfect competition?must a perfectly competitive industry be in the long run equilibrium if a perfectly competitive firm is in long run equilibrium? Explain and draw a graph to represent your answer
- explain when the firm maximizes its profit under perfect competition? can I get a answer like another pic? small and simple without steps The following graph shows the demand curve, as well as the AVC, ATC and MC curves of a company selling rolled oats in a perfectly competitive market. Use the graph to answer the questions. The goal of the company is to maximize its profit. How many boxes of rolled oats should it sell to attain this goal? What price will it charge? How much profit does this firm make per month? Will this company produce or shut down in the short run? Why? Will this firm exit the market for rolled oats in the long run or not? Why?You read in a business magazine that farmers are reaping high profits. With the theory of perfect competition in mind, what do you expect to happen over time (in the long run) to each of the following?