FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. (20 points) The graph on the next page shows the long run equilibrium for a representative perfectly competitive firm and the industry. The initial

image text in transcribed
image text in transcribed
6. (20 points) The graph on the next page shows the long run equilibrium for a representative perfectly competitive firm and the industry. The initial equilibrium price is Pe, Assume that this is a constant cost industry. a. Explain why this is a long-run equilibrium situation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Canada in the Global Environment

Macroeconomics Canada in the Global Environment

Authors: Michael Parkin, Robin Bade

8th edition

321778103, 978-0321808370, 321808371, 978-0321778109

More Books

Students also viewed these Economics questions

Question

★★★★★
What differences between a CD and a DVD account for the larger capacity of the latter?

Answered: 1 week ago

Question

★★★★★
James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $342,500. At December 31, 60 percent of this merchandise remains in James's...

Answered: 1 week ago

Question

★★★★★
Does the researcher overconclude? Are the conclusions supported by the results?

Answered: 1 week ago

Question

★★★★★
Installment Sales Analysis Complete the followingtable. 2010 2011 2012 Installment sales Cost of installment sales Gross profit Gross profit percentage Cash collections $50,000 $80,000 7) 91.800...

Answered: 1 week ago

Question

★★★★★
5 False Question 9 The Capital Asset Pricing Model (CAPM), also referred to as the Security Market Line approach, has no application in determining a company's cost of equity (rs). True 2 pts False

Answered: 1 week ago

Question

★★★★★
Friendly's Shoe Store has earnings before interest and taxes of $ 2 1 , 6 8 0 and net income of $ 1 2 , 5 4 2 . The tax rate is 3 4 percent. What is the times interest earned ratio?

Answered: 1 week ago

Question

★★★★★
(a) Show that the system of differential equations for the charge on the capacitor q(t) and the current i 3 (t) in the electrical network shown in Figure 7.6.9 is (b) Find the charge on the capacitor...

Answered: 1 week ago

Question

★★★★★
Can you draw the upper shear zone margin on Figure 16.9? Is it easily definable?

Answered: 1 week ago

Question

★★★★★
Develop an M-file to solve a single ODE with the fourth-order RK method. Design the M-file so that it creates a plot of the results. Test your program by using it to solve Prob. 22.2. Employ a step...

Answered: 1 week ago

Question

★★★★★
If the row variable and column variable are interchanged, how are the expected frequencies affected? Is the value of the chi-square statistic affected? Is the number of degrees of freedom affected?

Answered: 1 week ago

Question

★★★★★
The position of a person pacing in a hall is given by the \(x(t)\) curve in Figure P3.6. During which time interval(s) is the acceleration (a) positive (b) negative? (c) Is the acceleration ever zero...

Answered: 1 week ago

Question

★★★★★
Answer all According to China's Company law, who of the following persons could be eligible for appointment as a director, supervisor or senior manager of a company? A. A person who has been...

Answered: 1 week ago

Question

★★★★★
4. In the next communication situation you are in, already think through three different communication strategies, which will make you achieve greater flexibility. Then practice on these as soon as...

Answered: 1 week ago

Question

★★★★★
2. Now imagine a real situation in your workplace or home situation where someone gives you feedback. a. Did you perceive the feedback as a hidden criticism? b. Did you perceive the feedback as a...

Answered: 1 week ago

Question

★★★★★
2. In this chapter, the reader should reflect on the following concepts: feedback and flexibility as a basis for change, intention and communication as a basis for change and behavioural patterns as...

Answered: 1 week ago

Previous Question Next Question