This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If Pareto efficiency has been achieved A) there are no additional Pareto improvements that can be ... (Read 165 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
on: Jul 1, 2018
If Pareto efficiency has been achieved
 
  A) there are no additional Pareto improvements that can be made.
  B) surplus is maximized.
  C) economic efficiency is also achieved.
  D) All of the above.

Question 2

Suppose that a perfectly competitive industry is in long-run equilibrium, and demand increases. Explain the short- and long-run effects on the firm and the industry.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ally

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

Short run: An increase in demand raises equilibrium price and quantity. Existing firms produce more (because the higher price means that MR=MC at a higher quantity) and earn positive economic profits.

Long run: Positive profits attract new firms into the industry. The increase in supply reduces price and further increases quantity. Firms continue to enter until economic profits return to zero, and there is no further incentive for entry.


bobbie

  • Member
  • Posts: 592
Reply 2 on: Jul 1, 2018
:D TYSM

JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Kranz and Lörz first achieved in vitro plant fertilization Kranz and Lörz first achieved in vitro plant fertilization
A Need for Improved Water-Use Efficiency in Plants A Need for Improved Water-Use Efficiency in Plants
Regular staff meetings increase the efficiency of the medical office staff. Regular staff meetings increase the efficiency of the medical office staff.
The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected The Brain and Alcohol As you consume more alcohol, additional areas of your brain are affected
Energy Balance Is Achieved When Energy (Calories) In Equals Energy (Calories) Out Energy Balance Is Achieved When Energy (Calories) In Equals Energy (Calories) Out
How the cortical reaction in a mouse egg is thought to prevent additional sperm from entering the eg How the cortical reaction in a mouse egg is thought to prevent additional sperm from entering the eg
Video: Polysaccharides

For a complete list of videos, visit our video library