Assume the firms in a perfectly competitive market are initially incurring economic losses. An increase in supply would cause existing firms' economic losses to decrease.
84) Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run, entry by new firms will ensure that those profits are eliminated over time.
85) When a perfectly competitive market is in long-run equilibrium, price is equal to marginal cost, the individual firm is operating at the minimum of its short-run and long-run average cost curves, and economic profit equals zero.
86) Because two percent of the largest farms grow half of all of the grain in the United States, the grain industry is technically classified as an oligopoly.
87) The estimated price-cost margin of 11.9 percent in the market for broiler chickens in 1992 suggested that there was a high degree of competition in that industry.
88) There is an inverse relationship between the price-cost margin and the level of competition in a particular industry.
89) The larger firms in the red-meat industry have blunted the effects of competition by relying on product differentiation, which in effect, creates a downward-sloping demand curve for each firm's product.
90) If firms in a perfectly competitive industry produce an undifferentiated product, it is not possible to increase profits of the individual firms in the industry by increasing market demand for the product because of the large number of available substitutes.
91) Between 1999 and 2007, the behavior of firms in the trucking industry closely matched the outcome predicted by the model of perfect competition.
92) High fuel prices and losses by smaller firms have resulted in a considerable amount of consolidation in the trucking industry, which now most closely resembles the oligopoly market structure.
93) Assume the price elasticity of supply for grade wheat has been estimated to be +0.82. This means that when the price of wheat increases by 10 percent, the quantity of wheat supplied to the market increases by 82 percent.
94) When the percentage change in quantity supplied is greater than the percentage change in price, supply is said to be elastic.
95) Because of the large number of firms that operate in the agricultural industry, the supply of agricultural products is inelastic over the entire range of output.
Use the following information to answer the following questions. The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records ...Dec 09 2019
Write a process analysis essay about Explain how to study new languageApr 12 2021
Compare and contrast the management approach each took to Internet marketing and sales. Between Amazon and Borders BookMay 24 2018
Consider a logical address space of 32 pages with 1024 words perpage, mapped onto a physical memory of 16 frames. a. How many bits are required in the logical address?...Apr 17 2020
The variable resistor R in Fig1 b is adjusted until it absorbs the maximum power from the (b) circuit. (i) Calculate the value of R for maximum power 20 Ω 80 Ω 40 V Deter...Jun 03 2020
Which of the following will have the highest boiling point?May 20 2021
Find the monthly payment, needed to have a sinking fund accumulate the future value, $16,000. The yearly interest rate is 6.7% and the number of payments is 20. Interest ...May 28 2021
Portfolio Risk and Return. Suppose that the S&P 500, with a beta of 1.0, has an expected return of 10% and T-bills provide a risk-free return of 4%.a. How would you const...Jul 13 2021
Ed Klein was the sole shareholder, director, and chief executive officer of The Gun Exchange, Inc., a retail firearms dealership. The inventory of The Gun Exchange had be...Aug 15 2021
Say why the following series converges or diverges. Σ Q 1 in =ln 0 It converges since all its terms are positive It diverges according to p-series test. Olt converges sin...Jun 04 2021