+1-415-670-9189
info@expertsmind.com
Demonstrate the shift that will occur in market in long run
Course:- Business Economics
Reference No.:- EM13891956




Assignment Help
Assignment Help >> Business Economics

You are going to display what happens in the long run in perfectly competitive markets when firms are operating at a loss.

a) Draw a graph of a firm's MC, ATC, AVC, and MR curves that is operating at a loss, yet above its short-run shut-down price. Make sure that each curve has all the proper identifying characteristics (where the minimum is, increasing or decreasing, etc.)

b) On a separate graph, draw the supply and demand curve for the market in which this firm operates. Identify the equilibrium price.

c) Demonstrate the shift that will occur in the market in the long run if all firms in this market are operating at a loss. Identify the new equilibrium price after the shift.

d) On the graph from part a, draw the MR curve in the long run based on the price adjustment.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
In class, we study the two-part tariff question with the following system. Consumer 1 has demand function q1 = 50 − p1 and consumer 2 has q2 = 50 − 2p2 The per-unit cost of th
The issue of competition over time presents a number of problems for a firm. Based on your reading, additional research for this question, and personal experience, what do you
The minimum wage is typically set above the market-clearing wage in the market for labor. Using a graph with an upward-sloping supply of labor, a downward-sloping demand for l
Name and discuss the four major theories that address the term structure of interest rates. In your discussion, indicate the strengths and weaknesses of each of the theories a
Alliance, Inc. sells gas lamps to consumers through retail outlets. Total industry sales for Alliance's relevant market last year were $100 million, with Alliance's sales repr
You make monthly deposits of $1,000 in a bank starting at the end of month 1 and lasting 5 years (the last deposit is at the end of month 60). What is the future value of thes
Specialization can mean that different people produce different things or that different people perform different tasks in producing the same things. Give examples of differen
Below is hypothetical data for a manufacturer which possesses a fixed plant producing a commodity that requires only one variable input. Total Product is given. Total Fixed Co