competitive industry, with side-by-side graphs for the industry and a firm within that industry. Now, draw your own graphs showing a similar adjustment to a decrease in demand. i)What would happen to price and industry output in the short-run? ii) How would an individual firm respond? iii) Over time, would we have entry or exit in the industry? Why? What would then happen to the pri and output?

competitive industry, with side-by-side graphs for the industry and a firm within that industry. Now, draw your own graphs showing a similar adjustment to a decrease in demand. i)What would happen to price and industry output in the short-run? ii) How would an individual firm respond? iii) Over time, would we have entry or exit in the industry? Why? What would then happen to the pri and output?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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