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carmineantelope84Lv1

28 Sep 2019

A) When are firms likely to enter an industry? When are firms likely to exit an industry?

B) Would a firm earning zero economic profit continue to produce, even in the long run?

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Nusrat FatimaLv10

28 Sep 2019

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Related questions

When economic profits in a perfectly competitive industry are positive
A) Either more firms will enter or existing firms will expand output.
B) Either firm will exit or existing firms will cut back production.
C) Nothing will happen because firms cannot enter or exit the market without a government license.
D) Firms will continue to make a positive economic profit in the long run.

erinfish839

When are firms likely to enter an industry? when are they likely to exit?

bluecicada723

1.) The minimum feasible long-run average cost for firms in a perfectly competitive industry is $58 per unit. IF every firm in the industry currently is producing an output consistent with a long-run equilibrium, calculate the marginal cost incurred by each firm and the market price.

Marginal cost is $___ and market price is $___ .

How I calculate this?

2.) A perfectly competitive increasing cost industry is in long-run equilibrium. Due to a change in tastes and preferences, there is a decrease in demand. Which of the following best describes the effect on the industry?

The price will

A.) decrease, firms will produce more, profits will decrease, and more firms will enter until profit returns to zero.

B.) decrease, firms will produce less, profits will increase, and more firms will enter until profit returns to zero.

C.) decrease, firms will produce less, profits will be below zero, and firms will exit until profit returns to zero.

D.) increase, firms will produce more, profits will increase, and more firms will enter until profit returns to zero.

violetsea-lion583

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A) When are firms likely to enter an industry? When are firms likely to exit an industry?

B) Would a firm earning zero economic profit continue to produce, even in the long run?

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A) When are firms likely to enter an industry? When are firms likely to exit an industry? B) Would a firm earning zero economic profit continue to produce, even in the long run?

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Related textbook solutions

Principles of Economics

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A) When are firms likely to enter an industry? When are firms likely to exit an industry?

B) Would a firm earning zero economic profit continue to produce, even in the long run?