In long-run equilibrium, the perfectly competitive firm's price is equal to which of the following?Question 6Select one:a.Marginal revenue.b.All of the answers provided are correct.c.Minimum short-run average total cost.d.Short-run marginal cost.Clear my choiceQuestion 7Not yet answeredMarked out of 1.00Flag questionTipsQuestion textIf input prices rise as new, perfectly competitive firms enter an industry we that this is: ....Question 7Select one:a.a decreasing-cost industry.b.none of the answers provided are correct.c.an industry with a decreasing long-run supply curve.d.an increasing-cost industry.
Question
In long-run equilibrium, the perfectly competitive firm's price is equal to which of the following?Question 6Select one:a.Marginal revenue.b.All of the answers provided are correct.c.Minimum short-run average total cost.d.Short-run marginal cost.Clear my choiceQuestion 7Not yet answeredMarked out of 1.00Flag questionTipsQuestion textIf input prices rise as new, perfectly competitive firms enter an industry we that this is: ....Question 7Select one:a.a decreasing-cost industry.b.none of the answers provided are correct.c.an industry with a decreasing long-run supply curve.d.an increasing-cost industry.
Solution
Question 6: In long-run equilibrium, the perfectly competitive firm's price is equal to c. Minimum short-run average total cost. This is because in the long run, firms will enter or exit the market until they are making exactly zero economic profit, which occurs when price equals the minimum of average total cost.
Question 7: If input prices rise as new, perfectly competitive firms enter an industry, this is d. an increasing-cost industry. This is because as more firms enter the market, the demand for inputs increases, which drives up their prices. This in turn increases the cost of production for firms in the industry.
Similar Questions
33.The firm under perfect competition will be in short-run equilibrium, when: A. Rising marginal cost is equal to the minimum average cost B. Marginal revenue is equal to rising marginal cost C. Average revenue is equal to average cost D. Marginal revenue is equal to the falling marginal cost
Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves becauseQuestion 4Select one:a.firms maximize profits and free entry implies that maximum profits will be zero.b.firms in the industry desire to operate efficiently.c.firms seek maximum profits and to do so they must choose to produce where average costs are minimized.d.free entry implies that long-run profits will be zero no matter how much each firm produces.Clear my choice
Question 14 (1 point)Which of the following is true for both a monopolistically competitive firm and a perfectly competitive firm in long-run equilibrium? aMarginal cost is greater than marginal revenue. bPrice is greater than marginal cost. cPrice is equal to average total cost. dPrice is equal to marginal cost.
e) What is the relationship between the profit maximising price level and average total cost for monopolistically competitive firm in the long run and why? f) Is a monopolistically competitive firm allocatively efficient in the short run? long run? Why or why not? g) Is a monopolistically competitive firm productively efficient in the short run? long run? Why or why not? h) Is a monopolistically competitive firm dynamically efficient? Why or why not?
In long-run perfectly competitive equilibrium, which of the following is false?Group of answer choicesThere is efficient, low-cost production at the minimum efficient scale.Economic surplus is maximised.Firms earn economic profit.Economies of scale are exhausted.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.