Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 8, Problem 20SQ
To determine
The transition of the industry toward a new equilibrium due to a permanent increase in
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Check out a sample textbook solutionStudents have asked these similar questions
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
Explain in detail how purely competitive markets, in the long-run, know how to adjust to and provide the correct output, at the correct price.
Give an example of a good or service you might buy that is closest to being in a purely competitive market. Explain your logic.
Explain the two concepts listed below and draw a diagram to show a long-run supply curve associated with each. What are the possible causes, respectively?
a. Increasing-cost industry
b. Decreasing-cost industry
Chapter 8 Solutions
Economics For Today
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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- In the long run, firms in a competitive marketA.earn positive accounting profit, but zero economic profit.B.earn zero accounting profit and zero economic profit.C.shut down because their accounting profit goes to zero.D.earn negative accounting profit, but positive economic profit.arrow_forwardcan you please solve the other 2 questions? 1. Sales Revenue maximisation..... 2. Assume now that the diagram represent a perfectly competitive industry (also in the short run). What will the equilibrium level of output be?arrow_forwardRead “YOU’RE THE ECONOMIST: Recession Takes a Bite Out of Gator Profits” in Chapter 8. Assuming gator farming is perfectly competitive, explain the long-run competitive equilibrium condition for the typical gator farmer and the industry as a wholearrow_forward
- In a perfect competitive industry, the market price is R20. An individual firm produces output at which MC=R25. What should the firm do to maximise profits or to minimise losses in the short run? A. they should leave the output unchanged. B. they should increse production. C. they should decrease production. D. they should shut down.arrow_forwardM/c questions - Microeconomics 15) The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies above which average cost? A. fixed cost B. variable cost C. total cost D. sunk cost 14) When a perfectly competitive firm makes a decision to shut down, which is most likely? A. price is below the minimum of average variable cost B. marginal cost is above average total cost C. marginal cost is above average variable cost D. fixed costs exceed variable costsarrow_forwardYou're The Economist: Recession Takes a Bite Out of Gator Profits" in chapter 8. Assuming gator farming is perfectly competitive, explain the long-run competitive equilibrium condition for the typical gator farmer and the industry as a whole.arrow_forward
- The agricultural market for corn can be characterized as a purely competitive industry. How will an increase in the cost of fertilizer that is sold to corn farmers affect the short-run costs and output for a farm in the industry? How will this affect the profit of the individual farm?arrow_forwardHow does an increase in market demand for a product in a perfectly competitive market affectthe short-run and long-run equilibrium? Show on a diagram and discuss the adjustments firms make in terms of price and quantity to reach the new equilibrium. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward1.Explain how the long run differs from the short run in pure competition. 2. Explain how the entry and exit of firms affects resource flows and long-run profits and lossesarrow_forward
- Describe the course of events in a competitive market following theadoption of a new technology. What happens to output, price, andeconomic profit in the short run and in the long run?arrow_forwardHello my question is from my homework...it is: In the short-run equilibrium of a perfectly competitive market with identical firms that are profit-maximizing, if new firms are about to enter, which of the following is true? a. P > MC and P > ATC b. P > MC and P = ATC c. P = MC and P > ATC d. P = MC and P = ATCarrow_forwardWhat are the assumptions of perfect competition? What are the prospects for profitability in the short-run and long-run under perfect competition?arrow_forward
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