iv) Natural disasters increase the post-disaster Gross Domestic Product (GDP) and are good to long run economic growth of an economy. v) When the inflation rate rises from -4% to -2% in an economy, its general price level is falling. vi) In the short run, if a competitive firm is making profit, the firm should produce. But if a competitive firm is suffering loss, the firm should shut down.

iv) Natural disasters increase the post-disaster Gross Domestic Product (GDP) and are good to long run economic growth of an economy. v) When the inflation rate rises from -4% to -2% in an economy, its general price level is falling. vi) In the short run, if a competitive firm is making profit, the firm should produce. But if a competitive firm is suffering loss, the firm should shut down.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

If there were 10 firms in this market, the short-run equilibrium price of steel would be $______per ton. At that price, firms in this industry would ______(shut down/operate at a loss/ earn a positive profit/ earn zero profit). Therefore, in the long run, firms would__________(enter/ exit/ neither enter nor exit) the steel market. Because you know that competitive firms earn______(zero/ negative/ positive) economic profit in the long run, you know the long-run equilibrium price must be $_____per ton. From the graph, you can see that this means there will be_____(10/20/30) firms operating in the steel industry in long-run equilibrium.
ECON QUESTION
Question 1 please
Explain in detail
PLEASE ANSWER QUESTION 2
Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC = $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run. The firm should continue to produce its current level of output in the short run, but should exit the industry in the long run. The firm should continue to produce its current level of output in the short and long run.
The following figures depict the market supply and demand curves for a constant cost, competitive industry (left) and the per unit cost curves for a typical firm (right). For parts (a) and (c), below, you can again include your answers directly on the graph. A) Identify the short-run equilibrium in this market, indicating the price, aggregate quantity and the amount supplied by an individual firm. b) Explain why it is not a long-run equilibrium. c) Explain how the market would adjust to an equilibrium in the long-run
The agricultural market for corn can be characterized as a purely competitive industry. How will an increase in the cost of fertilizer that is sold to corn farmers affect the short-run costs and output for a farm in the industry? How will this affect the profit of the individual farm?
Using the table (Check if the values are correct), answer the questions below: a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the firms output level? - What is its profit (or loss)-per-unit at that output level? $ - What is its total profit? $ c. Now suppose the price of the product is $10. - What is the firm’s profit-maximizing output level? - What is the firm's profit or loss per-unit? $ - What is the firm's total profit (or loss)? $ d. At a price of $10, will the firm produce? e. If the price remains $10, what will happen to this firm in the long-run?
I was wondering what the answer to this problem in Krugman´s microeconomics book is: A benefit maximizer company has an economic loss of 10.000$ per year. Its fixed cost is 15.000$ per year. In the short term, should they keep producing or should the close the business? In the long run, should they stay in business? And if the company had a fixed cost of 6.000$ per year, should they stay in business in the long and short run? Thank you!
1
PLEASE ANSWER QUESTION 4