This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new ... (Read 97 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good.
 
  In the long run, the price is ________, firms with the new technology make ________ economic profit, and firms with the old technology ________. A) lower; zero; exit the industry
  B) constant; a positive; make zero economic profit
  C) lower; zero; switch to the new technology or exit the industry
  D) constant; zero; exit the industry

Question 2

The price effect refers to how changes in
 
  A) price affect real income.
  B) price affect the quantity of a good consumed.
  C) income affect prices.
  D) preference affect prices.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


bobypop

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Wow, this really help

CAPTAINAMERICA

  • Member
  • Posts: 325
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o Testing the effects of long-term fertilizing on inter-actions between mycorrhizal fungi and plants o
Cut view of long bone. Cut view of long bone.
Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ... Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ...
The Hotair long noncoding RNA regulates chromatin The Hotair long noncoding RNA regulates chromatin
The Oil Industry: BOEM iron triangle The Oil Industry: BOEM iron triangle
The Hardy–Weinberg equilibrium for two autosomal alleles. The Hardy–Weinberg equilibrium for two autosomal alleles.
Video: The Krebs Cycle Animation

For a complete list of videos, visit our video library