Business

Business, 04.08.2019 03:00, elenaabad18

Suppose that initially the price is $50 in a perfectly competitive market. firms are making zero economic profits. then the market demand shrinks permanently and some firms leave the industry and the industry returns back to a long-run equilibrium. what will be the new equilibrium price, assuming cost conditions in the industry remain constant? "

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Business, 27.07.2019 07:00, oopsorry

When profit-maximizing firms in competitive markets are earning profits, market demand must exceed market supply at the market equilibrium price. market supply must exceed market demand at the market equilibrium price. new firms will enter the market. the most inefficient firms will be encouraged to leave the market?

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Mathematics, 03.10.2019 00:00, janeou17xn

Perfect competition – consider a perfectly competitive market that has 4 firms in it (assume it is perfectly competitive despite their being only 4 firms). two of the firms use technology a and two of the firms use technology b. the respective costs of producing using technology a and b are given by the cost functions: = 40 + + = 30 + + demand is given by ) = 20 − 1 5 p. a) determine short run equilibria, i.e. optimal outputs for each type of firm, equilibrium quantity for the market as a whole, and the equilibrium price, and then calculate equilibrium profits for each type of firm. b) given your answers regarding profits of the type a and type b firms, what will you expect to happen in the long run? will other firms enter? will price stay the same? how will this impact the two types of firms differently? will both technologies be used in the long run? explain.

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Suppose that initially the price is $50 in a perfectly competitive market. firms are making zero eco...

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