Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 8, Problem 8SQP
(a)
To determine
Economic profit or loss.
(b)
To determine
The demand curve which results in loss.
(c)
To determine
The demand curve which results in shutdown.
(d)
To determine
The short-run supply curve of the firm.
Expert Solution & Answer
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Students have asked these similar questions
Consider Exhibit 7-11, which shows the graph of a perfectly competitive firm in the short run.
a) If the firm's demand curve is MR3, does the firm earn an economic profit or loss?
b) Which demand curve(s) indicate(s) the firm incurs a loss?
c) which demand curve(s) indicate(s) the firm would shut down?
d) Identify the firm's short-run supply curve.
A perfectly competitive industry with constant costs initially operates in long-run equilibrium. When demand increases:
A. in the long and short runs, prices and profits will be lower relative to what they were before the demand increase.
B. in the short run, prices and profits will be higher, but in the long run, price will fall back to its original level and firms will again earn zero economic profit.
C. in the short run, prices and profits will fall, but in the long run, price will rise back to its initial level, as will profits.
D. in the long and short runs, prices and profits will be higher relative to what they were before the demand increase.
A perfectly competitive firm that is maximizing profits will experience which of the following price changes in response to an increase in variable costs? In the short run, the firm’s price will:
a. stay the same.b. increase.c. decrease.d. decrease and then increase in the long run.e. increase and then decrease in the long run.
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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