10 10 Supply SRATC LRAC 6. P=MR=AR (E 3 MC Demand1 Demand2 10 20 30 40 50 60 70 80 90 100 10 30 40 50 60 70 80 90 100 Quantity (in thousands) Quantity 20 す 2. Price per unit ($) 5. 2. Price ($) The demand shift results in a short-run economic profit for the firm. a long-run economic profit for the firm. a short-run economic loss for the firm. a short-run economic proft of 0. Long-run equilibrium is restored in this industry when short-run economic losses attract resources. In the long run, firms enter the industry, increasing market price and driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC, short-run economic losses cause resources to flow to other industries. In the long run, firms exit the industry, reducing market price and driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC short-run economic profits attract resources. In the long run, firms enter the industry, reducing market price and driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC, O short-run economic profits attract resources. In the long run, firms enter the industry, reducing market price and driving economic profit to 0. Long-run equilibrium is restored when P > LRAC = SRATC = %3D MC,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Consider the graphs of a constant cost industry and a perfectly competitive firm within it. Initially, the industry is in long‑run equilibrium at point E, then demand shifts from Demand1 to Demand2. Answer the questions where P is the price, MR is the marginal revenue, AR is the average revenue, MC is the marginal cost, SRATC is the short‑run average total cost, and LRAC is the long‑run average total cost.

Manipulate both of the graphs to reflect the adjustments that yield the long‑run equilibrium.

10
10
Supply
SRATC
LRAC
6.
P=MR=AR
(E
3
MC
Demand1
Demand2
10
20
30
40
50
60
70
80
90
100
10
30
40
50
60
70
80
90
100
Quantity (in thousands)
Quantity
20
す
2.
Price per unit ($)
5.
2.
Price ($)

The demand shift results in
a short-run economic profit for the firm.
a long-run economic profit for the firm.
a short-run economic loss for the firm.
a short-run economic proft of 0.
Long-run equilibrium is restored in this industry when
short-run economic losses attract resources. In the long run, firms enter the industry, increasing market price and
driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC,
short-run economic losses cause resources to flow to other industries. In the long run, firms exit the industry, reducing
market price and driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC
short-run economic profits attract resources. In the long run, firms enter the industry, reducing market price and
driving economic profit to 0. Long-run equilibrium is restored when P = LRAC = SRATC = MC,
O short-run economic profits attract resources. In the long run, firms enter the industry, reducing market price and
driving economic profit to 0. Long-run equilibrium is restored when P > LRAC = SRATC =
%3D
MC,

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions