« previous next »

Author Question: Suppose some firms in a perfectly competitive market are incurring an economic loss. As a result, ... (Read 193 times)

imowrer

  • Hero Member
  • *****
  • Posts: 514
on: Jun 29, 2018
Suppose some firms in a perfectly competitive market are incurring an economic loss. As a result,
 
  A) all the firms will eventually incur an economic loss.
  B) some firms will leave the market and the price of the good will rise.
  C) some firms will leave the market and the remaining firms' quantity will decrease.
  D) the total market economic profit must equal 0.

Question 2

When does a decrease in supply raise the price more: When demand is elastic or when demand is inelastic? When OPEC decreases the supply of oil, the price of gasoline skyrockets. Hence is the demand for gasoline elastic or inelastic?
 
  What will be an ideal response?
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


bblaney

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A decrease in supply raises the price more when demand is inelastic. The skyrocketing price of gasoline indicates that the demand for gasoline is inelastic.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Older adults may grieve intensely over the loss of a person or situation that has been a part of the Older adults may grieve intensely over the loss of a person or situation that has been a part of the
Gallstones result from the crystallization of salts and other compounds in bile Gallstones result from the crystallization of salts and other compounds in bile
Client’s view with visual field loss Client’s view with visual field loss
economic question economic question
economic question economic question
economic question economic question
Video: Blood Flow through the Human Heart

For a complete list of videos, visit our video library