Home / Questions / When discussing pure competition, the term long run refers to a period of time long enoug
When discussing pure competition, the term long run refers to a period of time long enough to allow:
a. Firms already in an industry to either expand or contract their capacities.
b. New firms to enter or existing firms to leave.
c. Both a and b.
d. None of the above.
2. Suppose that the pen-making industry is perfectly competitive. Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves, with minimum ATC = $1.25 per pen. If the market equilibrium price of pens is currently $1.50, what would you expect it to be in the long run?
a. $0.25.
b. $1.00.
c. $1.25.
d. $1.50.
3. Suppose that as the output of mobile phones increases, the cost of touch screens and other component parts decreases. If the mobile phone industry features pure competition, we would expect the long-run supply curve for mobile phones to be:
a. Upward sloping.
b. Downward sloping.
c. Horizontal.
d. U-shaped.
Dec 05 2019 View more View Less
A 5-year Treasury bond has a 4.45% yield. A 10-year Treasury bond yields 6.4%, and a 10-year corporate bond yields 8.4%. The market expects that inflation will average 2....
Sep 02 2020Which statement is correct.a. one mole of SO2 contains 6.02x1023 atoms of oxygen.b. molar mass of SO2 is the same as the molar mass of oxygen gas.c. one mole of SO2 equal...
May 22 2021Why is the annual report of great interest to investors?
Jun 02 2021Consider the shape of the two age structure diagrams to the right. Which population will grow the fastest? Which includes the greater proportion of older people?
Jun 29 2021Define Carrying amount
Aug 25 2020Who might the accounting convention of conservatism hurt?View Solution:
May 14 2020Match the following terms with the appropriate definitions:1. A corporation controlled by another company when the parent owns more than 50% of the subsidiary's votin...
Jan 27 2020In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce ...
Apr 25 2020The irreversible elementary reaction 2A —+ B takes place in the gasphase in an isothermal tubular (plug-Jlow) reactor. Reactant A and a diluentC are fed in equimolar rati...
Jul 31 2020The following accounts and balances were drawn from the records of Shearer Company at December 31, 2016: Cash .................. $22,100 Land .................. 43,000 In...
May 06 2020