Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What will be the new equilibrium price, assuming cost conditions in the industry remain constant? a. $50.
b. $45.
c. Lower than $50 but exact value cannot be known without more information.
d. Larger than $45 but exact value cannot be known without more information.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that initially the price is $50 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
When a customer purchases merchandise inventory from a business organization, she may be given a discount which is designed to induce prompt payment. Such a discount is called a (n) trade discount. nominal discount. enhancement discount.
Answers (1)
In the decision-making process, which step occurs after the need is determined?
Answers (1)
What questions do you hope to answer about career exploration as you study this course
Answers (1)
An LCD screen is purchased to be used in the manufacturing of a digital watch. The standard price for the LCD screen used is $40.00. During the month of February, 3,400 screens were purchased and used.
Answers (1)
When a student enters college, tuition is the
Answers (1)
New Questions in Business
Darius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables, but he also is evaluating each product's reputation, warranty, his own experience with the brand and, of course, the
Answers (1)
If Canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the US has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries?
Answers (1)
Recording Standards in Accounts The Assembly Department produced 5,000 units of product during March. Each unit required 2.20 standard direct labor hours.
Answers (1)
Jennifer's Boutique has 2,100 shares outstanding at a market price per share of $26. Sally's has 3,000 shares outstanding at a market price of $41 a share. Neither firm has any debt. Sally's is acquiring Jennifer's for $58,000 in cash.
Answers (1)
Why are protective tariffs considered negative? They cause imports increase. They cause imports to decrease. Countries usually raise tariffs in retaliation. Exports often decrease. They cause people to buy more goods produced by their home country.
Answers (1)