Assume that a firm is in a perfectly competitive market in long-run equilibrium. a - What happens to its consumer surplus, and producer surplus? b-Can they be increased? c - What are ways of reducing the firm's costs further?

Assume that a firm is in a perfectly competitive market in long-run equilibrium. a - What happens to its consumer surplus, and producer surplus? b-Can they be increased? c - What are ways of reducing the firm's costs further?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

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Assume that a firm is in a perfectly competitive market in long-run equilibrium. a - What happens to its consumer
surplus, and producer surplus? b-Can they be increased? c - What are ways of reducing the firm's costs further?

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