Why does the short-run market supply curve for a product

Assignment Help Microeconomics
Reference no: EM13316427

Why does the short-run market supply curve for a product slope upward to the right? Why does the long-run market supply curve generally slope upward to the right? Why is the long-run market supply curve generally more elastic than the short-run supply curve?

Reference no: EM13316427

Questions Cloud

The demand for resources is a derived demand : The demand for resources is a derived demand.” What is meant by that statement? Why is the employment of a resource inversely related to its price?
Barriers to entry are crucial to the existence of long-run : Barriers to entry are crucial to the existence of long-run profits, but they cannot guarantee the existence of profits
Why do you think there are only a few different varieties of : What determines the variety of styles, designs, and sizes of different products? Why do you think there are only a few different varieties of toothpicks but lots of different types of napkins on the market?
Will firms in a price-taker market be able to earn profits : Will firms in a price-taker market be able to earn profits in the long run? Why or why not? What determines profitability? Discuss.
Why does the short-run market supply curve for a product : Why does the short-run market supply curve for a product slope upward to the right? Why does the long-run market supply curve generally slope upward to the right?
When the firms in the industry are just able : When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business
Operator will be able to make at least a normal profit : In a price-taker market, if a business operator produces efficiently-that is, if the cost of producing the good is minimized-the operator will be able to make at least a normal profit
Farmers are often heard to complain about the high costs : Farmers are often heard to complain about the high costs of machinery, labor, and fertilizer, suggesting that these costs drive down their profits
Do implicit costs contribute to the opportunity cost : What are implicit costs? Do implicit costs contribute to the opportunity cost of production? Should an implicit cost be counted as cost? Give three examples of implicit costs.

Reviews

Write a Review

Microeconomics Questions & Answers

  Compare the present worth of the depreciation of the system

Your civil engineering consulting firm is going to purchase a new computer-aided design (CAD) system at a cost of $100,000. The CAD system will have no salvage value at the end of its useful life of 5 years.

  How to continue with the simultaneous move assumption

Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two, is contemplating its capacity strategy, which we can broadly characterize as "aggressive" or "passive." The "aggressive" strategy involves a large increase in cap..

  Income and cross price elasticity of demand

Determine the price, income and cross price elasticity of demand and how would you characterize the demand for haddock?

  Show a constant cost monopoly firm maximizing

what would this price be in order to eliminate the deadweight loss. Show and explain. Why would the monopoly not charge this price? Show and explain.

  Whether gdp will be underestimated or overestimated

Production is accompanied by significant spillover costs. The government produces valuable goods and services at a low cost. The cost of living is lower in the country than is typical in the world.

  A grocery store notices that the cross-price elasticity

A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%. By how much should they expect chocolate syrup sales to increase?

  Drawing the economy production possibilities

Discuss how does the existence of money decrease the expenses of making transactions, relative to a society based entirely on barter?

  Impact of a change from a monopolistic competition

Potato chip industry in Northwest was competitively structured and in long run competitive equilibrium; companies were receiving a normal rate of return and were competing in a monopolistically competitive market structure.

  Explain advantages and limitations of compensation approach

Sales force compensation can be approached several different ways. Discuss sales force compensation, explaining each of the different ways compensation can be structured, and the advantages and limitations of each compensation approach that you sh..

  Highly inelastic price elasticity of supply

Name three goods or services with highly elastic price elasticity of supply. Name three goods or services with highly inelastic price elasticity of supply.

  Show the effects of the subsidy on a graph

How much substitutability do you suppose exists between inputs in winemaking? How might this factor affect efforts to cut costs?

  What mechanism could strong economic growth lead to politics

International data show a positive correlation between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth and through what mechanism could strong economic growth lead to politic..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd