« previous next »

Author Question: How is the short run response to a change in demand or cost condition different from the long run ... (Read 39 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
How is the short run response to a change in demand or cost condition different from the long run response in a perfectly competitive market?

Question 2

Some competitive firms are willing to operate at a loss in the short run because their revenues are at least able to cover their variable costs.
 a. True
  b. False
  Indicate whether the statement is true or false


TDubDCFL

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 30, 2018
Answer to Question 1

In the short run, the only response to a change in demand or cost conditions comes from firms already in the market. In the long run, profits will attract new entrants and losses will induce unprofitable firms to leave the market.

Answer to Question 2

True


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Growth response by grasses grazed by wildebeest Growth response by grasses grazed by wildebeest
The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Flexible cooling fan blades change shape as the engine speed changes. Flexible cooling fan blades change shape as the engine speed changes.
Climate Change Climate Change
A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ... A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ...
computer short cuts computer short cuts
Video: hGH (protein synthesis, growth and development)

For a complete list of videos, visit our video library