What do you expect to happen in the long run?

Assignment Help Microeconomics
Reference no: EM13852370

1) Questions 5 through 7 refer to the following graphical representation of a short-run situation faced by a perfectly competitive firm.

2049_45.png

Is this a good market for this firm to be in?
Yes the firm should be here in the short run but in the long run it should leave.
Yes the firm should be here in the short run and it should also stay in the long run.
No; the firm should exit immediately.

2) Which of the following describes the firm's situation in the short run?
The firm is breaking even
There is a short run loss
There is a short run profit
The short run profit/loss situation cannot be determined from this graph

3) What do you expect to happen in the long run?
New firms will enter; short-run profits will disappear
New firms will enter; short-run losses will disappear
Some existing firms will leave; short-run profits will disappear
Some existing firms will leave; short-run losses will disappear

 

 

 

 

Reference no: EM13852370

Questions Cloud

Find the equilibrium price and quantity : What did Congress hope to achieve by setting this price control?
Provide step by step solving process : A dental clinic at which only one dentist works is open two days a week. During those two days, the traffic arrivals a Poisson distribution with patients arriving at the rate of three per hour. The doctor serves patients at the rate of one every 15 m..
What is the average gain of the insurance company : Suppose an insurance company charges $800 per year for a certain health insurance policy with a maximum payout of $20,000 when customer makes a claim. Each year, 3% of the customers submit a claim.What is the average gain of the insurance company per..
What are the steps to solving : A criminologist developed a test to measure recidivism, where low scores indicated a lower probability of repeating the undesirable behavior. The test is normed so that it has a mean of 140 and a standard deviation of 40.
What do you expect to happen in the long run? : What do you expect to happen in the long run?
Round your answers to four decimal places : The mean tax-return preparation fee H&R Block charged retail customers last year was $183 (The Wall Street Journal, March 7, 2012). Use this price as the population mean and assume the population standard deviation of preparation fees is $50.Round yo..
Historical cost principle : Many transactions and events are reported based upon on the historical cost principle (in contrast to fair value).
Assume grades in a course follow a normal distribution : Assume grades in a course follow a normal distribution. The average grade in a class is 75, and the standard deviation is 5 points. A professor takes a sample of 10 people in the class and calculates the average for that class is also 75. IN other wo..
Explain maslow theory of motivation : Explain Maslow's theory of motivation and its connection related to why workers join unions. What is the current status of the labor movement? Make sure to include your viewpoint

Reviews

Write a Review

Microeconomics Questions & Answers

  The bay of pigs invasion

Conduct a literature and an Internet search on the topics of the Challenger disaster and groupthink. Then, discuss how groupthink might have created decision-making problems for NASA and its booster contractor. Cite at least two sources in your an..

  The annual income from an apartment complex

The annual income from an apartment complex is $21,809. The annual expense is estimated to be $2,607. The apartment complex could be sold for $122,149 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if y..

  Explain the situations under which firm selects low-cost

describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.

  Describe challenges globalization presents to trade unions

The problem is belongs to Economics. The problem is explain about the challenges that globalization presents to trade unions and how trade unions should respond to such challenges.

  Two candidates machines are under consideration

Two candidates’ machines are under consideration. For machine a, initial cost is $100,000, operating benefits are $40,000 per year and useful life is 6 years. The respective data for machine B are 150,000, $50,000 and 9 years.

  What impact would those options have on the equilibrium

When obama was campaiging for president in 2008 he proposed more government spending paid for with higher taxes on the rich. What impact would those options have on the equilibrium?

  Represents the weekly demand that a local theater faces

The following equation represents the weekly demand that a local theater faces. Qd = 2000 - 25 P + 2 A, where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week.

  Describe your understanding of externalities

Describe your understanding of externalities by providing an example of a positive externality and a negative externality and why do positive and negative externalities lead to inefficiency in the market economy?

  The kingdom of the north and the iron islands produce 2 good

The Kingdom of the North and the Iron Islands produce 2 goods

  Determine factors that influence price elasticity of demand

Select a product you have purchased in the past month from a clothing or shoe store. Explain how each of the four factors contributed to the elasticity of the good.

  Discuss general purpose technological

One of the stumbling blocks of Voice over IP has been the implementation of a 911 service. The given story appeared on the newswires on Tuesday:

  Name other examples of agricultural products that have

name other examples of agricultural products that have attempted to differentiate themselves.how have they

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