Demand for a product in a purely competitive industry

Assignment Help Business Economics

Reference no: EM13853471

If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:

1. Greater than its marginal cost

2. Equal to its marginal cost

3. Greater than its average cost

4. Less than its marginal cost

Reference no: EM13853471

Questions Cloud

Type of local area network called a home area network : Some of the reasons a website would need to be redesigned is the management system or technology may be out of date, the web designs are probably look old or outdated, website is not mobile friendly, not getting the result you are seeking for, or ..

Marginal productivity of labor : According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..

Diminishing marginal rate of substitution implies : A diminishing marginal rate of substitution implies that indifference curves are

What is the current rate of inflation or deflation : What is the current rate of inflation or deflation? Which one do think might be more disruptive for an economy, and why? Describe a policy in the AS-AD model that would reduce inflation from the current level. Do you the U.S. should adopt this policy..

Demand for a product in a purely competitive industry : If there is a decrease in demand for a product in a purely competitive industry, it results in an industry contraction that will end when the product price is:

Demand with quasi-linear utility function : Essential Problems in bold: Demand with a quasi-linear utility function. Consider a consumer with the following utility function u(x1, x2) = √x1 + x2. This is an example of a Quasi-Linear utility function. Calculate the MRS for this consumer for gene..

What are your thoughts on black friday in store : What are your thoughts on Black Friday in store deals versus Cyber Monday, do you find one to be more beneficial to the consumer than the other

What is the best approach to write the essay : What is the best approach to write the essay for the homework assignment (below). What type of template or document is available to complete this assignment. It is due today. The course is (MGMT-500) MBHO23 Applied Management Theory (MGMT-500-01A

Price change on the demand-supply-equilibrium price : The price of hamburger meat in College Town has recently fallen. Explain in detail the effects of this price change on the demand, supply, equilibrium price, and equilibrium quantity exchanged for fast food hamburgers in College Town and why. Draw a ..

User Account

All Pages