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. LRMCLRACP.AR_=D.%3DMR LOutput24

In a perfectly competitive market there are large number of numbers of sellers selling homogeneous…

Answered: The graph above illustrates the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.