Initially, a perfectly competitive industry that has 1,000 firms ...

[cmoore54]

Initially, a perfectly competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good.
 
  In the short run, the price ________, firms with the new technology make ________ economic profit, and firms with the old technology ________. A) remains the same; zero; incur economic losses
  B) falls; positive; incur economic losses
  C) remains the same; positive; make normal profit
  D) remains the same; positive; incur economic losses

Question 2

The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point
 
  A) VMP > MCL.
  B) VMP = MCL.
  C) VMP < MCL.
  D) VMP = W.

[cuttiesgirl16]

Answer to Question 1

B

Answer to Question 2

C

[cmoore54]

Thanks for the timely response, appreciate it

[peter]

TYSM