Compact discs are sold in a perfectly competitive market. The current market price of compact discs is $15 if at the current level of production of compact discs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should OA produce fewer compact discs OB. continue producing the current level of compact dises OC. produce more compact discs OD. raise the price of its compact discs O

If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and average total cost, it will O keep producing in the short run but exit the market in the long run. O shut down in the short run but return to production in the long run. O shut down in the short run and exit the market in the long run. O keep producing both in the short run and in the long run.

Which is an example of an almost perfectly competitive market? O the market in licensed physical therapy services O the antique furniture market O the market in pain medications the stock market the National Hockey League

er 11 i Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. Now assume that an increase in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price will be Multiple Choice OO O the same as the initial equilibrium price, but the new industry output will be greater than the original output. greater than the initial price, and the new industry output will be greater than the original output. less than the initial price, but the new industry output will be greater than the original output. the same as the initial equilibrium price, and the industry output will remain unchanged. 23 11,229 X OCT all Z A

PRICE A பயடு X Figure 16-8 B T LL L QUANTITY M MC ATC Demand MR Refer to Figure 16-8. Which of the following best describes the profit-maximizing outcome for the firm depicted her a. This firm is in long run equilibrium and will continue to earn zero profit. b. This firm is earning zero profit in the short run, but will earn a positive profit in the long run. c. This firm is incurring a short-run loss, but will earn zero profit in the long run. d. This firm is earning a short-run profit, but will earn zero profit in the long run.

20 12 10 0 MC ATC -MR 10 Quantity (units) Figure 11.4.1 Refer to Figure 11.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market O supply will decrease. demand will decrease. O supply and market demand will decrease. supply will increase. O demand will increase.

The short-run elasticity of supply curve is steep because O A. diminishing marginal returns restrict output in the short run. OB. production facilities have a fixed capacity in the short run. OC. new firms enter the market with new production facilities. OD. of both A and B. SURU O E. All of the above.

How does an increase in market demand for a product in a perfectly competitive market affectthe short-run and long-run equilibrium? Show on a diagram and discuss the adjustments firms make in terms of price and quantity to reach the new equilibrium.   Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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