Pure competition in the long run and short run.

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Answer 1

Question

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

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Students have asked these similar questions

Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

Answer 2

Question

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

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Answer 3

Question

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

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Answer 4

Question

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

Answer 6

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

Answer 7

Chapter 11, Problem 1DQ

To determine

Pure competition in the long run and short run.

Answer 8

Expert Solution & Answer

Explanation of Solution

During a short run, the industry will have a precise number of companies. All of these will have a plant size that is set and is not in a position to be altered as it is there for a short run. Firms might shut down given the impression that it won't be making commodities during the short run, but they will not have adequate time to pay off its due obligations and their business will eventually close down.

In contrast, the industry, during the long run will have companies that are already in it and have ample time to either expand or minimize their size. Also, the company numbers in the industry can go up or come down as new companies enter or already present firms leave.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept Introduction:

Pure Competition: In pure competition, the number of buyers and sellers are large. They are selling homogenous products. Price is fixed by the market force. An individual producer or consumer cannot influence the price. There is no restriction for entry or exit, in the business. Consumers and producers are well aware of the market situation.

Answer 12

Ch. 11.6 - Prob. 1QQ Ch. 11.6 - Prob. 2QQ Ch. 11.6 - Prob. 3QQ Ch. 11.6 - Prob. 4QQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ

Pure competition in the long run and short run.

Pure competition in the long run and short run.

Explanation of Solution

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