Explain the long-run adjustments for the industry

Assignment Help Business Economics
Reference no: EM13246260

A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but in which firms are operating below their minimum efficient scale. Explain the long-run adjustments that will take place for the industry to attain long-run equilibrium with firms operating at their minimum efficient scale.

Reference no: EM13246260

Questions Cloud

What is the increase in the gravitational potential energy : An 150kg man climbs up a 1m high flight of stairs, What is the increase in the gravitational potential energy of the man-earth system
A nickel is a transition element and has a variable valence : Nickel is a transition element and has a variable valence.Using a nickel salt, 2 F (faradays) plate out 39.2 g ofnickel. What ions are in the solution of this salt? Atomic molar masss Ni = 58.7 g·mol-1
What is the expected value of v over the vacation : A family is taking a 10 day vacation, the only one possible due to busy schedules. 2 possiblilities: Someone will get sick and ruin vacation (so no vacation days) or no one will get sick and they will have 10 vacation days.
Offer of trade and diplomatic recognition : What historical and cultural elements might account for Qianlong’s refusal of Great Britain’s offer of trade and diplomatic recognition?
Explain the long-run adjustments for the industry : A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but in which firms are operating below their minimum efficient scale.
Calculate the speed of an airliner : Calculate the speed of an 8.5 × 104 kg airliner with a kinetic energy of 1.2 × 109 J
What is its rotational kinetic energy : A propeller is modeled as five identical uniform rods extending radially from its axis. what is its rotational kinetic energy
What is the most effective way of decreasing the quantity : a. How will a successful campaign that decreases the supply of drugs influence the price of drugs and the amount spent on them. What is the most effective way of decreasing the quantity of drugs consumed and decreasing the amount of drug-related cri..
Find what should the fed set the money growth rate : Suppose the central bank wants to achieve an inflation rate equal to 1% and the current growth rate of real GDP is 2%. If the quantity theory of money holds, what should the Fed set the money growth rate equal to

Reviews

Write a Review

 

Business Economics Questions & Answers

  How might managers use this information

Suppose that macroeconomics forecasters predict that economy will be expanding in near future. How might managers use this information.

  Illustrate what does the efficient market hypothesis

illustrate what does the efficient market hypothesis say will happen to the price of the stock when the $4 loss is announced.

  What are the negative effects of each

If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.

  What is the amount of interest in the first payment

How long will it take, in months, to pay off the balance, if the cardholder continues to make payments of $110.25 per month and adds no other charges to the card?

  Profit maximization problem of the representative firm

Write down the profit maximization problem of the representative firm. What is the new short run equilibrium price and production.

  Find the new optimal solution

Electrocomp incurred an oversupply of fans in the preceding period, management also insists that no more than 80 fans be produced during this production period. Resolve this product mix problem to find the new optimal solution.

  How much profit does each firm earn

How much profit does each firm earn. Ignoring antitrust considerations, would it be profitable for your firm to merge with Fasten It If not, explain why not; if so, put together an offer that would permit you to profitably complete merger.

  Illustrate what must the new price be to achieve the goal

If the current price of its product is $80 also there is no change in quantity if price is increased, illustrate what must the new price be to achieve the goal.

  Illustrate what is the minimum range

illustrate what is the minimum range within which the sample average failure rate must be found to justify with 95% confidence the advertised failure rate of 0.5%.

  The law of comparative advantage recommends that countries

The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.

  How does the price elasticity of demand for corn

How does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil? Explain, using economic terms, why this is so.

  What benefit do economic models provide

What benefit do economic models provide to decision makers seeking to manipulate economic conditions? In your posts, specifically address the models GDP, GDI, and their major components.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd