Question 1
In long-run equilibrium for a perfectly competitive industry, price equals
◦ short-run marginal cost.
◦ short-run average cost.
◦ long-run average cost.
◦ All of these are correct.
Question 2
Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to incur economic losses in the short run, and some producers will exit the industry until those remaining earn a zero economic profit, if consumers
◦ switch from grape juice to orange juice.
◦ switch from orange juice to grape juice.
◦ do not change their demand for orange juice.
◦ All of these are correct.
Peau d’orange.
Peau d'orange
Lineweaver–Burk plots of the reactions with and without a competitive inhibitor
Apples Vs. Orange
Markets and Institutions Market Story Problem