If firms in a perfectly competitive industry are earning losses, we would expect that in the long run

In the short run, if a perfectly competitive firm chooses to produce, then its profits are maximized by producing the quantity of output where marginal cost equals marginal revenue. True False

In the long run when a perfectly competitive firm experiences positive economic profits firms exit the industry, the market supply curve shilts leftward, and the market price rises. firms enter the Industry, the market supply curve shifts rightward, and the market price fals firms enter the industry, the macket supply curve shifts rightward, and the market price rises firms exit the industry, the market supply curve shifts rightward. and the market price falls

The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short - run a profit - maximizing firm would: Produce and earn a negative economic profit Not produce (as it leads to a negative profit) Produce and earn a normal profit Produce and earn a positive economic profit The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short-run a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 6 3 MO O Produce and earn a negative economic profit O Not produce (as it leads to a negative profit) O Produce and earn a normal profit O Produce and earn a positive economic profit ATC AVC 6 bis & Quantity

Demand BA Quantity Refer to Externality graph above. Point A is the current equilibrium level of output of this product and point B is the socially optimal level of output for the society. S is the supply curve that includes private costs. St is the supply curve that includes public costs. The graph indicates that there is (arc): O a. positive externalities from product production. O b. spillover costs from the production of this product. Oc. spillover benefits to the production of this product. O d. an underallocation of resources to product production. Price %24

in a perfectly competitive market with a constant cost industry, there are currently 100 identical firms, each with the total cost function TC(Q) = Q^2 + 4Q + 36. The market demand is Q = 1800 – 50p. a. What is the price at the short-run equilibrium? What is the net profit/loss of each firm at this price? b. In the long run, how many firms will enter into /exit from the market?

In a perfectly competitive market... Group of answer choices   It will eventually reach long-run equilibrium.   Economic profits will be driven down to zero in the short run   Firms will compete for business by setting different prices at or above the prevailing equilibrium price   A few firms will dominate the market share.

Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC = $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run. The firm should continue to produce its current level of output in the short run, but should exit the industry in the long run. The firm should continue to produce its current level of output in the short and long run.

Lesson 5.4 - Industry Adjustments to Increases in Demand 1. In a/an industry, an increase in demand will result in a new equilibrium price equal to the original equilibrium price (before demand increased). This results in a long-run supply curve that is 2. In a/an industry, an increase in demand will result in a new equilibrium price higher than the original equilibrium price (before demand increased). This results in a long-run supply curve that is sloping. 3. In a/an. industry, an increase in demand will result in a new equilibrium price lower than the original equilibrium price (before demand increased). This results in a long-run supply curve that is sloping.

Firms in the market for dog food are selling in a purely competitive market. A firm producing dog food has an output of 10,000 pounds of dog food, for which it sells for $0.50 a pound. At the output level of 10,000 pounds the average variable cost is $0.40, the average total cost is $0.70, and the marginal cost is $0.50. What do expect will happen in the long-run? Explain.