Long run equilibrium

Assignment Help Microeconomics
Reference no: EM13110409

Consider a perfectly competitive market in long-run equilibrium where all firms operate under the same cost conditions. Suppose a new technology becomes available which reduces marginal production costs. Explain graphically and verbally what happens to the market in the short run and in the new long run equilibrium if factor prices and demand are assumed to remain the same as before.

Hint: You have to use two parallel diagrams, one for an individual (representative) firm and one for the industry.

Reference no: EM13110409

Questions Cloud

Multiple choice questions - adl matrix : Which of the following competitive position of a firm is not as per ADL Matrix? Which of the following does  stand for in the BCG Matrix?
Null hypothesis-test statistic-p-value-decision : In an evaluation of the medical lab, the manager is interested in the efficiency of three technicians when they process four routine blood tests.
Find probability person getting married first time is young : Suppose ages for first marriages have normal distribution with standard deviation of four years. Determine the probability that the person getting married for first time is younger than 23 years of age?
Effect of significance level : Is the null hypothesis more likely to be rejected at alpha = 0.01 than alpha = 0.10? As the significance level increases to alpha = 0.10 from alpha = 0.01
Long run equilibrium : Explain graphically and verbally what happens to the market in the short run and in the new long run equilibrium if factor prices and demand are assumed to remain the same as before.
What are the two chemical modes of enzyme catalysis : Chymotrypsin and trypsin cleave peptide bonds by virtually the same mechanism. Why does chymotrypsin cleave near residues like tyrosine, but trypsin does not?
Testing medication reaction : A researcher is testing the effect of a new cold and flu medication on reaction time. A sample of n = 9 students is obtained and each student is given the normal dose of the medicine.
Compare internal vs external recruiting : Compare internal vs external recruiting. When would you want to use each option? what are some advantages and disadvantages of each?
Value of test statistic-decision rule : The production manager at Bellevue Steel, a manufacturer of wheelchairs, wants to compare the number of defective wheelchairs produced on the day shift with the number on the afternoon shift.

Reviews

Write a Review

Microeconomics Questions & Answers

  Delta-hedged portfolio

Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.

  Define long-run cost minimization problem for firm

Determine the relationship between and returns to scale and obtain the long-run input demand functions and the total cost function.

  Plot the growth rate for techistan and growthistan

Compare the two graphs for GNP for Techistan and Growthistan. What is the difference in the final value of GNP for each country and Plot the growth rate for Techistan and Growthistan on one plot.

  Perform a white test for heteroskedasticity

Perform a White test for heteroskedasticity using auxiliary regression

  Formulation of demand curve

A company wants to prepare the demand curve for its product that it is selling. How would it get the information to prepare the schedule? How could a company prepare the demand curve for the new product that has not been seen by the public?

  Particular mix of price and quantity

Law of Demand indicates that there is the inverse relationship between price and quantity, why does it matter which particular mix of price and quantity is selected?

  Discuss the barriers to entry into an industry

Define the barriers to entry into an industry. Describe how each barrier can foster either monopoly or oligopoly. Which barriers, if any, do you feel give rise to monopoly that is socially justifiable?

  Discuss the appropriate target value and the actions

Build a Balanced Scorecard for unit of the comapny for which you work. Identify the strategic objectives of the entire company and the secondary objectives for the unit.

  Five forces framework

The costs of manufacturing steel declined substantially from building a conventional hot rolled steel mill down to new mini mill technology that need only scrap metal,

  Transfer pricing-optimal output equation

A firm sells specialized electronic computers. Each of the computers has a unique chip produced at a California plant at cost of Cw(Qc)=Q^2 c

  Economic naturalist writing assignment

Use a principle, or principles, discussed in the course to explain some pattern of events or behaviour that you personally have observed.

  Production and cost in the short run

Discuss why it would cost Pete Sampras or Venus Williams more to leave the pro tennis tour and open a tennis shop than it would cost a coach of a tennis team to do so.

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