Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 12.5, Problem 3RQ
To determine
What happens to output,
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Question 14
Ma owns a pizza shop with AVC = $70 and ATC = $98. It is a competitive market and the market price for pizza is $95. Mr. Ma should
A: exit the market in both the short-run and long-run.
B: continue his business in both the short-run and long-run.
C: continue his business in the short-run but exit in the long-run if the situation continues.
D: shut down his business in the short-run but continue in the long-run if the situation continues.
1)Which kind of industry would have a downward-sloping long-run supply curve?
Select one:
a. no industry
b. a decreasing cost industry
c. a constant cost industry
d. an increasing cost industry
2)The market for designer jeans is a good example of a perfectly competitive market.
Select one:
True
False
6)The long run is the period after all exit and entry has occurred.
Select one:
True
False
60. In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run?
A. an increase in labor costs
B. a decrease in market demand
C. an increase in market demand
D. an increase in the number of firms
Chapter 12 Solutions
Microeconomics (13th Edition)
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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- 7 A local tavern in a perfectly competitive market was in a long-run equilibrium. Then, a scientific breakthrough determines that beer prevents heart attacks, resulting in an increase in demand for beer. Describe the market processes that affect the tavern in both the short run and the new long-run equilibrium.arrow_forwardassume fresh vegetable market is perfectly competitive and a typical farmer was break-even prior to the price changes. explain and illustrate graphically, the effect of change in price on the short-run position of an individual farm whose crops have not been affected by the flood. explain and illustrate the long run position for a typical farmer.arrow_forwardFill in the missing words: 1. If economic profits are being made in a perfectly competitive market, then firms will ________ the market. This will ________ the extra revenue firms earn for each unit of output soldarrow_forward
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