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 62 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
Wow, this really help

kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Franz Marc, Die grossen blauen Pferde (The Large Blue Horses). Franz Marc, Die grossen blauen Pferde (The Large Blue Horses).
economic economic
economic question economic question
economic question economic question
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Inflammatory response Animation

For a complete list of videos, visit our video library