Cost of production and efficiency in long-run equilibrium, Managerial Economics

Assignment Help:

What are the conclusions about the cost of production and efficiency in the long-run equilibrium of a perfectly competitive industry?

Three conclusions regarding the cost of production and efficiency into the long-run equilibrium of a perfectly competitive industry as follows:

a. Within a perfectly competitive industry into equilibrium, the value of marginal cost is similar for all firms.

b. In a perfectly competitive industry along with free entry and exit, every firm will have zero economic profits into long- run equilibrium.

c. The long-run market equilibrium of a perfectly competitive industry is effective: no equally beneficial transactions go unexploited.


Related Discussions:- Cost of production and efficiency in long-run equilibrium

What is the maximum possible output, If the marginal product of L is MPL = ...

If the marginal product of L is MPL = 10K - L and the marginal product of K is MPK = 10L - K, then what is the maximum possible output when the total amount that can be spent on K

The international monetary fund, The International Monetary Fund The I...

The International Monetary Fund The International Monetary Fund is a kind of an embryo World Central Bank.  Its objectives are: i.    To work towards the full convertibilit

Increase in demand - effect on equilibrium price, Increase in demand ...

Increase in demand SS is the supply curve and D 1 D 1 the initial demand curve shifts to the right, to position D 2 D 2 .  P 1 is the initial equilibrium price and q 1

Measures to control inflation, Measures to control inflation An inflat...

Measures to control inflation An inflationary situation can effectively be addressed/tackled if the cause is first and foremost identified.   Governments have basically three

Briefly explain the importance of forecasting for managers, Question: i...

Question: i) Briefly explain the importance of forecasting for managers? ii) To what extent will managers rely on surveys in business forecasting? iii) What do you mea

Elasticity, determinants of price expectation of elasticity

determinants of price expectation of elasticity

Elasticity of demand, Definition of Elasticity Is defined as the ratio...

Definition of Elasticity Is defined as the ratio of the relative change of one (dependent) variable to changes in another (independent) variable, or it's a percentage change o

Types of elasticity, what are the examples of the types of elasticity (pri...

what are the examples of the types of elasticity (price,income & cross elaticity

State the traditional demand theory, State the Traditional demand theory ...

State the Traditional demand theory So an over-simplified and the most commonly stated demand function is: Dx = f (PX) thatconnotes that demand for commodity X is the function

Limitations of open market operations, Limitations of Open Market Operation...

Limitations of Open Market OperationsLimitations For their success central bank open market operation assume that commercial banks in the country will expand their credit port

Write Your Message!

Captcha
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