A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases.
Which of the following will happen as the market leaves and then returns to long-run equilibrium? Select all that apply.
1. Individual firms' profit-maximizing output will decrease in the long-run.
2. Firms will enter into the market in the long run.
3. Market quantity will decrease in the long-run.
4. Individual firms' profit-maximizing output will decrease in the short-run.
5. Firms will exit the market in the long run.
6. Market price will decrease in the long-run.
7. Market quantity will remain the same in the long-run.
8. Market price will decrease in the short-run.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases. Which ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Josh ate a cheeseburger, fries, and a soda for lunch. list the foods he could choose for dinner to balance out his lunch.
Answers (1)
you have a budget of $3000. You want to buy email addresses, and each address cause $.37. How many addresses can you buy?
Answers (2)
A change in quantity supplied of a product is the result of a change in
Answers (1)
What is total cost of ownership?
Answers (1)
On the statement of cost of goods manufactured, which of the following items would not be reported? A. raw materials used. B. gross profit. C. direct labor costs. D. ending work in process inventory.
Answers (1)
New Questions in Business
Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm.
Answers (1)
A firm produces 10 calculators that they sell for $15 each. The average variable cost for the production of 10 calculators is $13/unit. The fixed costs for this firm equal $20. What is the value of this firm's profits
Answers (1)
g The multiplier effect states that there are additional shifts in aggregate demand from fiscal policy, because it a. decreases income and thereby increases consumer spending. b. reduces investment and thereby increases consumer spending. c.
Answers (1)
Ryobi Limited sold a set of saws to Ace Hardware. The list price was $3,800. Ryobi offered a chain discount of 8/3/1. What's the net price of the saws
Answers (1)
Marcus is asked by higher management to create a document that provides a high level description of a project that has not yet been approved.
Answers (1)