+1-415-670-9189
info@expertsmind.com
Long-run equilibrium in constant-cost competitive industry
Course:- Microeconomics
Reference No.:- EM13700097




Assignment Help
Assignment Help >> Microeconomics

Draw a new set of graphs that illustrate long-run equilibrium in a constant-cost competitive industry. Use two graphs, one for the market and another for a representative firm. a. Show and discuss the effect an increase in market demand has on the representative firm and the market in the short run. Show and discuss the short-run effect an increase in demand has on the market price; firm and market output; firm profits; and the number of firms. b. Discuss and illustrate the market dynamics that take place in the long run. Show and discuss the long-run effect an increase in demand has on the market price; firm and market output; firm profits; and the number of firms. c. Discuss the market’s long-run supply curve for a competitive, constant-cost industry.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
List four variables that would cause a decrease in real GDP (possibly resulting in a recession). Indicate whether changes in each variable increase or decrease aggregate dem
Presume that the economy has the following production function: Y/L = 8*(K/L) 0.5. Further suppose that s = 0.2, gL = 0.3, and δ = 0.1. What is the value of the steady state
Outline the significant factors that could cause changes in supply and demand for the product. Determine the primary manner in which both the short-term and the long-term ch
Describe three types of elasticity of demand. Indicate how you would use information from recent research paid by your company that the own price elasticity of your product is
A consumer lives three periods, called the learning period, the working period, and the retirement period.  Her income is 200 during the learning period, 800 during the workin
Discuss the meaning of the regression coefficient of the independent variable(s) and how it could be used to estimate the elasticities of each of these variables. Discuss ho
An industry contains two firms, both with cost function TC(y) = 30y. The demand function for the firms' output is p = 120 - Y, where Y is the total output (Y=y1+y2). What are
Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.