What does it mean when a firm is producing less output?
This means the firm is: producing less output than allocative efficiency requires. new firms will enter this market. if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
What happens when a purely competitive firm seeks to maximize profit?
In the short run, a purely competitive firm that seeks to maximize profit will produce where total revenue exceeds total cost by the maximum amount.Correct that output at which economic profits are zero.
How do economic profits induce firms to enter an industry?
a. Economic profits induce firms to enter an industry; losses encourage firms to leave. Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price:
How do you graph total revenue for a purely competitive firm?
For a purely competitive firm, total revenue graphs as a straight line, parallel to the vertical axis. straight, upsloping line.Correct straight line, parallel to the horizontal axis. straight, downsloping line. straight, upsloping line. Which of the following statements applies to a purely competitive producer?
What are economic profits?
Economic profits induce firms to enter an industry; losses encourage firms to leave.Correct. Economic profits induce firms to leave an industry; profits encourage firms to leave. Normal profits will cause an industry to expand. Economic profits induce firms to enter an industry; losses encourage firms to leave.
Do oligopolistic firms have a lot of price discrimination?
oligopolistic firms' prices tend to fluctuate a lot, and there tends to be a wide variance in oligopoly pricing. oligopolists tend to practice a lot of price discrimination, and there tends to be a wide variance in oligopoly pricing.
