At the long-run profit maximizing equilibrium of a firm in a perfectly competitive market, in the long run the company will not be able to maintain any economic profit. If there are economic profits to be made in the market, other firms will enter the market. The entry of the new firms...
By setting its MR equal to its MC a monopolist determines the output that would maximize its profit. A) True B) False 16. In the long run each competitive firm would produce at the quantity level where its MC is equal to its MR as well as...
B) the market cannot be in either a short-run or a long-run equilibrium. C) the market must be in long-run equilibrium but cannot be in a short-run equi Out of the four economic market models: competitive market, monopoly market, ...
PerfectlyCompetitiveMarket •PerfectCompetitionDefined•TheProfitMaximizationHypothesis•TheProfitMaximizationCondition•ShortRunSupply •ShortRunSupplyCurvefortheFirm•ShortRunMarketSupplyCurve•ShortRunPerfectlyCompetitiveEquilibrium•ProducerSurplus•LongRunSupply•LongRunSupplyCurvefortheFirm•LongRun...
Understand how the long-run industry supply curve describes the relationshipbetween price and industry output over the long run, taking into account how input prices may be affected by an industry's expansion/contraction. Analyze the extent to which the competitive market model applies.s we have ...
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 ...
Zero economic profits means the firm is earning a normal rate of return and a positive accounting profit. Since perfectly competitive firms have no barriers to entry, economic profits cannot be positive in the long run because new competitors will enter the market place driving down economic profit...
In a perfectly competitive market, firms make zero economic profits in the long-run. What causes this? A perfectly competitive firm earns positive economic profit whenever ___. The zero-profit point for a firm in a perfectly competitive market will occur where: a. MC = AC ...
Suppose a firm in a perfectly competitive market is making a profit. Assume the market price is $36.(3) The firm's profit can be represented by a rectangle with a base equal to the quantity produced and a height equal to the A. difference in price and marginal cost. B. average total...
PerfectlyCompetitiveMarket •PerfectCompetitionDefined •TheProfitMaximizationHypothesis •TheProfitMaximizationCondition •ShortRunSupply •ShortRunSupplyCurvefortheFirm •ShortRunMarketSupplyCurve •ShortRunPerfectlyCompetitiveEquilibrium •ProducerSurplus •LongRunSupply •LongRunSupplyCurvefortheFirm ...