Econ Micro (book Only)
Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 8, Problem 9P
To determine

The reasons for firms choosing to operate in a perfectly competitive market despite of no economic profits in the long run.

Why firms choose to operate in perfect competition even though they earn no economic profits in the long run.

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Students have asked these similar questions
(Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $38, what profit (or loss) will this firm earn? a profit of $200 a loss of $30 T a loss of $200 a profit of $80 This is what I think the answeris
Question 3 (Equilibrium) 200 Suppose the market demand is Qp and the market supply is Qs = 2NP, where N is the number of P firms in the market. Suppose N = 25. (a) What are the short-run equilibrium price and the equilibrium quantity? (b) What is the output level for cach firm? (c) What is the profit for each firm? (d) Repeat part (a) through (c) for N = 400.
(Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $38, what profit (or loss) will this firm earn?Possible solutions   a profit of $80 a loss of $30 a profit of $200
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