Suppose the firms in a monopolistically competitive market

Assignment Help Business Economics

Reference no: EM13987233

Suppose the firms in a monopolistically competitive market are earning positive economic profits. What will happen to move the market to its long-run equilibrium?

The firms' demand curves will become less elastic.

The demand curves faced by firms in the market will shift to the right.

More close substitutes will appear in the market.

Some firms will exit the market if they can't cover all of their fixed and variable costs.

Reference no: EM13987233

Questions Cloud

Assume a perfectly competitive firm is producing : Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this information, the firm is:

Assume the demand for a good is price inelastic : Assume the demand for a good is price inelastic, i.e., ed

Develop goals and objectives for your practicum experience : Develop goals and objectives for your Practicum Experience in this course. When developing your goals and objectives, be sure to keep the seven domains of practice in mind

Confident in nutritional information on restaurant menus : Find the probability that all four adults are very confident in the nutritional information on restaurant menus. Find the probability that none of the four adults are very confident in the nutritional information on restaurant menus. Find the probabi..

Suppose the firms in a monopolistically competitive market : Suppose the firms in a monopolistically competitive market are earning positive economic profits. What will happen to move the market to its long-run equilibrium?

Complete the flexible budget performance report for the : TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. Complet..

Assume also that the marginal physical product : Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last un..

Describe patients age factors related to parkinson disease : Parkinson's disease: describe the patients genetic, gender and age factors related to Parkinson's disease. Reflect on how these factors might impact this disorder, as well as potential associated alterations and symptoms

Assume perfectly competitive firm is producing level : Assume a perfectly competitive firm is producing a level of output at which MR

User Account

All Pages