Tommy’s Tires operates in a perfectly competitive market. If tires sell for 50 each and ATC = 40 per tire at the profit maximizing output level, then in the long run ( ) A. more firms will enter the market. B. some firms will exit from the market. C. the equilibrium price per ...
Using tools developed in macroeconomics, this paper first asks: Do the conventional assumptions of perfect competition and constant returns to scale hold in the long run? Measuring the markup of price over marginal cost, we find evidence of persistent markups in an extensive panel of US publicly ...
In a perfectly competitive market new entries could result in increases in input prices thus making production costs go up. A) True B) False 9. In a perfectly competitive market, in the long run, each firm produces the maximum amount it can prod...
In perfectly competitive market, in the long run, arbitrage profits will be bid away. a. True. b. False. True or false? The long-run supply curve in a perfectly competitive market is perfectly elastic because of free entry and exit of firms. In ...
cannot be in a perfectly competitive market because its short-run economic profits are greater than zero.D.cannot be in a perfectly competitive market because its long-run economic profits are greater than zero. 相关知识点: 试题来源: 解析 A 参考译文: 一个屠夫傍晚回家,担子里面的肉已经卖完,只有...
Answer to: Model how a perfectly competitive market will reach long-run equilibrium if firms are currently earning negative economic profits. By...
PerfectlyCompetitiveMarket (e)Allfirms(industryparticipantsandnewentrants)haveequalaccesstoresources(technology,inputs).•FreeEntry:Condition(e)impliesthatallfirmshaveidenticallongruncostfunctions 6 PerfectlyCompetitiveMarket $/outputunit Atapriceofp’,zeroisdemandedfromthefirm MarketSupply p’pe Atapriceofp”...
cannot be in a perfectly competitive market because its long-run economic profits are greater than zero. 相关知识点: 试题来源: 解析 A 改写后的解析: 1. 句意需要表达“关于流行游戏的规则”,因此需要填入“rule”的复数形式“rules”。 2. 句意表达“在课间不要互相追逐,不安全”,因此需要填入形容词...
The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. In the long run, firms will ___ the market and the market ___ will ___. A. leave; supply; decrease B. enter; supply; increase...
In a long run competitive equilibrium entry and exit of firms causes the typical firm to earn zero economic profits. 121 Chapter 8 Learning Objectives When you finish this chapter you should be able to: 1. Define a perfectly competitive market, and explain why a perfect competitor faces a ...