Question
need some help thank you.
If the typical firm in a perfectly competitive market was depicted in the graph below, what would be most likely to occur? New firms would be likely to enter, decreasing the market price. Existing fi.nns would be likely to exit, increasing the market price. Existing firms would be likely to exit, decreasing the market price. New firms would be likely to enter, increasing the market price. Firm would neither enter nor exit and the market price would remain unchanged. If input costs remain the same as industry output expands, what would you expect to be the long-run impact of an increase in demand on an industry currently in long-run equilibrium? There will be more firms and the price will decrease. There will be more firms and the price will increase. There will be fewer firms but the price will remain the same. There will be more firms but the price will remain the same. There wi11 be fewer firms and the price will decrease. Refer to Figure 7-B. When the market price equals $54, the firm: should shut down. should continue operating temporarily despite an economic loss because the firm is able to cover all of its variable costs. should continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs. should continue operating because the firm is making a profit. both b. and c. are true.
Explanation / Answer
99.E
100.D
101.A
102.C
103.D
104.A
105.C
106.A
107.B
108.D
109.A
110.B
111.C
112.E
113.B
114.E
115.D
116.D
117.D
118.D
