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

Author Question: Assume a competitive market has firms earning large economic profits. What is expected to happen ... (Read 50 times)

joesmith1212

  • Hero Member
  • *****
  • Posts: 549
on: Jun 30, 2018
Assume a competitive market has firms earning large economic profits. What is expected to happen over time in this competitive market and to firm's profits?

Question 2

Marginal utility is measured by:
 a. a ray from the origin to a point on the total utility curve.
  b. the change in total utility for a 1-unit change in the quantity consumed.
  c. total utility divided by total quantity consumed.
  d. the first utility minus the last utility.
  e. average utility multiplied by the total quantity consumed.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bookworm410

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

Economic profits will attract new firms into the market. This increases market supply and decreases market price. The demand curve facing firms will decline (shift downward). Profits will decline until a zero economic profit (a normal profit) is earned. In the long run, competitive firms can earn only a normal profit.

Answer to Question 2

b


joesmith1212

  • Member
  • Posts: 549
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

brbarasa

  • Member
  • Posts: 308
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Large intestine Large intestine
This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
economic question economic question
economic question economic question
economic question economic question
Video: Major Elements in Biological Molecules: Proteins

For a complete list of videos, visit our video library