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anewer st wer ald th uestions of thi sart Each question correcty Please answer a

ID: 1124381 • Letter: A

Question

anewer st wer ald th uestions of thi sart Each question correcty Please answer all the ouestions of this part, Each question worth 23 points 10-3) Define the ters: aShort-Ra market supply of a certain product which is sold in a purely competitive market bShort-Rum Law of Supply of a certain product which is sold in a parely competitive market. Provide a numerical example of the Law of Supply. cPare Competitive Market. d. Monopoly rQ-2) Define the terms: Business Firm -left b. Long-Run A verage Total Cost of Product (output) C. A function of one independent and one dependent variable. Test d. The Rate of Change between two variables. Provide a numerical example for the Rate of Change.

Explanation / Answer

a.

b.

c. Purely Competitive market = Large number of sellers who sell a homogenous product at the same price. There are no barriers to enter or leave the industry and profit is zero in long run.

d. Monopoly market = Single seller who sell a unique product at his on price. There are strong barriers to enter or leave the industry and profit are positive in long run.

a. Firm = It is the subset of an industry. Many similar firms combine to constitute an industry.

b. LRATC = It is U shaped envelope curve showing that cost decreases initially with increase in output due to economies of scale and later cost increases due to diseconomies of scale.