The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer. Question 5 options: in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition. in the short-run, the demand curve and average revenue shift as other frims leave the market and decrease competition. in the long-run, the demand curve and average revenue shift as other frims enter the market and increase competition. in the long-run, the demand curve and average revenue shift as other frims leave the market and decrease competition.
The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer. Question 5 options: in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition. in the short-run, the demand curve and average revenue shift as other frims leave the market and decrease competition. in the long-run, the demand curve and average revenue shift as other frims enter the market and increase competition. in the long-run, the demand curve and average revenue shift as other frims leave the market and decrease competition.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The graph above illustrates the electricity market. Consider market competition between firms where
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in the short-run, the |
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in the short-run, the demand curve and average revenue shift as other frims leave the market and decrease competition. |
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in the long-run, the demand curve and average revenue shift as other frims enter the market and increase competition. |
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in the long-run, the demand curve and average revenue shift as other frims leave the market and decrease competition. |
Transcribed Image Text:LRMC
LRAC
P.
AR_=D.
%3D
MR L
Output
24
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