What will happen when variable costs rise in a perfectly competitive industry?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.abCQuestion 5dThe number of firms will eventually increase, but the existing firms will cut back production in the short run.The number of firms will eventually decrease and the existing firms will cut back production in the short run.The number of firms will eventually decrease, but the existing firms will expand production in the short run.The number of firms will eventually increase and the existing firms will expand production in the short run.B

Perfectly competitive market refers to the market where a firm is taker and price is determined by…

What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The number of firms will eventually increase, but the existing firms will cut back production in t b The number of firms will eventually decrease and the existing firms will cut back production in t

What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a The number of firms will eventually increase, but the existing firms will cut back production in t b The number of firms will eventually decrease and the existing firms will cut back production in t

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 13E

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Suppose a firm in a perfectly competitive industry develops a manufacturing innovation that lower its variable cost of production. What are the short run impacts of this innovation on both the firm and the industry? Please include a graph to illustrate the short run impacts. What are the long run impacts on both the firm and industry? Please include a graph to illustrate the long run impacts.
What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. The number of firms will eventually increase, but the existing firms will cut back production in the short run. a b C Question 81 d The number of firms will eventually decrease and the existing firms will cut back production in the short run. The number of firms will eventually decrease, but the existing firms will expand production in the short run. The number of firms will eventually increase and the existing firms will expand production in the short run.
Suppose a firm in a perfectly competitive industry develops a manufacturing innovation that lower its variable cost of production. Use words and graphs to explain the short run impacts of this innovation on both the firm and the industry. Use words and graphs to explain the long run impacts on both the firm and industry.
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The number of firms in an industry is not always a good indicator of the extent to which that industry is competitive.” Do you agree with this statement?