Suppose a firm in a purely competitive sector discovers that the price of its product is above its minimum AVC point however all over listed below ATC. Given this, the firm:
have to continue creating in the brief run, however leave the sector in the long run if the instance persists.

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In the brief run, firms might incur economic losses or earn economic revenues, yet in the lengthy run they earn normal earnings.
If a pucount competitive firm is creating at the MR = MC output level and also earning an financial profit, then:
Which of the complying with statements is correct? A. Economic revenues induce firms to enter an industry; losses encourage firms to leave.B. Economic revenues induce firms to leave an industry; earnings encourage firms to leave.C. Economic earnings and also losses have actually no substantial impact on the development or decrease of an sector.D. Normal earnings will cause an sector to expand.

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Suppose a purely competitive, increasing-expense industry is in long-run equilibrium. Now assume that a decrease in customer demand also occurs. After all resulting adjustments have been completed, the brand-new equilibrium price
Which of the complying with statements is correct? A. The long-run supply curve for a purely competitive increasing-price industry will certainly be upsloping.B. The long-run supply curve for a pudepend competitive increasing-price sector will be perfectly elastic.C. The long-run supply curve for a purely competitive market will be much less elastic than the industry"s short-run supply curve.D. The long-run supply curve for a pucount competitive decreasing-cost industry will be upsloping
if 100 systems can be produced for $100, then 150 deserve to be created for $150, 200 for $200, and so forth.
Assume a pudepend competitive increasing-price industry is initially in long-run equilibrium and also that a rise in customer demand also occurs. After all economic adjustments have been completed product price will certainly be:
Assume a purely competitive, increasing-price sector is in long-run equilibrium. If a decrease in demand occurs, firms will:
If a purely competitive constant-expense market is realizing economic revenues, we can mean market supply to:
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