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Author Question: A perfectly competitive market is in long-run equilibrium. At present there are 100 identical firms ... (Read 105 times)

ETearle

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on: Jun 29, 2018
A perfectly competitive market is in long-run equilibrium. At present there are 100 identical firms each producing 5,000 units of output. The prevailing market price is 20. Assume that each firm faces increasing marginal cost.
 
  Now suppose there is a sudden increase in demand for the industry's product which causes the price of the good to rise to 24. Which of the following describes the effect of this increase in demand on a typical firm in the industry?
  A) In the short run, the typical firm increases its output and makes an above normal profit.
  B) In the short run, the typical firm increases its output but its total cost also rises, resulting in no change in profit.
  C) In the short run, the typical firm's output remains the same but because of the higher price, its profit increases.
  D) In the short run, the typical firm increases its output but its total cost also rises. Hence, the effect on the firm's profit cannot be determined without more information.

Question 2

What is rent seeking and how is it related to regulatory capture?
 
  What will be an ideal response?
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
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bookworm410

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Reply #1 on: Jun 29, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ETearle

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

debra928

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Reply 3 on: Yesterday
:D TYSM

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