1
answer
0
watching
105
views
peargoose253Lv1
11 Dec 2019
All of the following statements are true about pure competition in the long-run, except
a) The long-run adjustment in pure competition happens through shifts in the industry demand curve.
b) Entry and exit of firms will shift the demand curve facing the representative firm in the industry.
c) The long-run adjustment in pure competition happens through shifts in the industry supply curve.
d) Entry and exit of firms will push the economic profits of firms in the industry towards zero.
All of the following statements are true about pure competition in the long-run, except
a) The long-run adjustment in pure competition happens through shifts in the industry demand curve.
b) Entry and exit of firms will shift the demand curve facing the representative firm in the industry.
c) The long-run adjustment in pure competition happens through shifts in the industry supply curve.
d) Entry and exit of firms will push the economic profits of firms in the industry towards zero.
Joshua StredderLv10
21 Mar 2021
Related textbook solutions
Related questions
Match the following.
| constant-cost industry | A market structure in which a large number of firms sell a homogenous product or service with no restrictions on entry or exit and each firm is a price-taker. |
| increasing-cost industry | The demand facing a price-taking firm. |
| long-run equilibrium | A firm produces zero output but must still pay its fixed costs. |
| marginal revenue product | Price below which a firm shuts down in the short run. |
| perfect competition | All firms produce where price equals long-run marginal cost, and economic profits are zero. |
| perfectly elastic demand | Industry in which input prices rise as all firms in the industry expand output. |
| shut down | Industry in which input prices remain constant as all firms in the industry expand output. |
| the shut-down price | The additional revenue earned by hiring one more unit of a variable input. |
Ā
