Suppose a firm in a purely competitive industry discovers that the price of its product is over its minimum AVC point yet anywhere below ATC. Given this, the firm:
need to proceed developing in the short run, however leave the industry in the lengthy run if the instance persists.

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In the short run, firms may incur economic losses or earn financial profits, yet in the long run they earn normal earnings.
If a pucount competitive firm is creating at the MR = MC output level and also earning an financial profit, then:
Which of the adhering to statements is correct? A. Economic earnings induce firms to enter an industry; losses encourage firms to leave.B. Economic earnings induce firms to leave an industry; earnings encourage firms to leave.C. Economic earnings and also losses have no significant impact on the development or decrease of an sector.D. Common revenues will certainly cause an industry to expand.

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Suppose a purely competitive, increasing-price sector is in long-run equilibrium. Now assume that a decrease in customer demand occurs. After all resulting adjustments have actually been completed, the brand-new equilibrium price
Which of the adhering to statements is correct? A. The long-run supply curve for a pucount competitive increasing-cost market will be upsloping.B. The long-run supply curve for a pucount competitive increasing-expense sector will be perfectly elastic.C. The long-run supply curve for a pudepend competitive industry will be much less elastic than the industry"s short-run supply curve.D. The long-run supply curve for a pucount competitive decreasing-expense sector will certainly be upsloping
if 100 units have the right to be produced for $100, then 150 have the right to be created for $150, 200 for $200, and so forth.
Assume a pucount competitive increasing-cost industry is initially in long-run equilibrium and that a boost in consumer demand also occurs. After all economic adjustments have actually been completed product price will be:
Assume a pudepend competitive, increasing-price market is in long-run equilibrium. If a decrease in demand also occurs, firms will:
If a purely competitive constant-expense industry is realizing financial earnings, we can intend industry supply to:
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