This topic contains a solution. Click here to go to the answer

Author Question: Assume a firm is operating in a purely competitive market facing an upward-sloping long-run supply ... (Read 83 times)

abc

  • Hero Member
  • *****
  • Posts: 543
Assume a firm is operating in a purely competitive market facing an upward-sloping long-run supply curve.
 
  If the industry is currently making pure economic profit what adjustment processes would take place in this market? What would happen to the industry supply curve, equilibrium quantity and equilibrium price?

Question 2

If prices in the economy rise, then
 
  A) the purchasing power of a dollar stays constant.
  B) the purchasing power of a dollar rises.
  C) the purchasing power of a dollar declines.
  D) the purchasing power of a dollar cannot be determined.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zacnyjessica

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

The economic profit would attract entry. However, as more firms enter the market this will drive up the costs of all the firms in the industry. This will then lead to a higher equilibrium quantity and a higher price in the market.

Answer to Question 2

C




abc

  • Member
  • Posts: 543
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Gracias!

 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

For a complete list of videos, visit our video library