In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is

Question:

In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is a positive area between the long-run industry supply curve and the long-run equilibrium price. What does this area represent?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Social Media Marketing A Strategic Approach

ISBN: 978-0538480871

1st edition

Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher

See More Books

Question Posted: Mar 17, 2016 04:12 AM

See More Questions

Pollution that increases firm costs the Market Outcome: In the text, we assumed for convenience that the ill effects of pollution are felt by people other than producers and consumers. Consider...
Using License Fees to Make Positive Profit: Suppose you own one of many identical pharmaceudical companies producing a particular drug x. A: Your production process has decreasing returns to scale...
Review the concept of externalities from Chapter 5, page 148. If a market is a monopoly, will a negative externality in production always lead to production beyond the level of economic efficiency?...
Use any method to determine if the series converges or diverges. Give reasons for your answer. n10 10" n=1
Repeaters are used on many communication lines. What is their purpose? What doesa repeater do?
Traveling at 40 miles per hour, Diego can complete his daily commute in 45 minutes. How many minutes would he save if he traveled at 50 miles per hour?
Consider the simple linear regression model fit to the solar energy data in Problem 2.3. Problem 2.3 Table B. 2 presents data collected during a solar energy project at Georgia Tech. a. Construct a...
Connor Chemical Company's plant processes batches of organic chemical products through three stages after starting with raw materials: (1) Mixing and blending, (2) Reaction chamber, and (3)...
Image transcription text Week 4A Design Project 2: Ulysses - Starprobe (NASA-JPL) The primary objective of the Starprobe mission was to investigate the properties of the solar wind during the fly-by...
This computer project involves the calculation of various items associated with the Income and Retained Earnings Statements. A spreadsheet is to be designed to accept input in one section, and then...
What is the producer surplus for an individual firm? What is the producer surplus for a market when the number of firms in the industry is fixed and input prices do not vary as industry output...
The annual accounting statement of revenues and costs for a local flower shop shows the following: Revenues ..........................................$250,000 Supplies...
What distinguishes involuntary from voluntary stakeholders?
A The following is the cash book (bank columns) of F. King for December 2013: You are required to: (a) Write the cash book up to date to take the necessary items into account, and (b) Draw up a bank...
Suppose your health insurance allows you, a worker, to buy whatever prescription drugs you wish for $5 per prescription. In contract negotiations it is proposed to change this benefi t to 1020, that...
Consider the market labor demand L D and labor supply L S , where W is the market wage. Demand: L D = 1,000 20 W Supply: L S = 200 + 400 W (a) What is the equilibrium market wage? What is the...
Suppose, if ill, that Freds demand for health services is summarized by the demand curve Q = 50 2 P , where P is the price of services. How many services does he buy at a price of $20? Suppose that...
The following are extracts from the cash book and the bank statement of F. Perry. You are required to: (a) Write the cash book up to date, and state the new balance as on 31 December 2012, and (b)...
The wheel having a mass of 100 kg and a radius of gyration about the z axis of k z = 300 mm rests on the smooth horizontal plane. If the belt is subjected to a force of P = 200 N, determine the...
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
What is market segmentation? Give three examples of market segments.
What is role theory, and how does it help us to understand consumer behavior?
What is big data?
what ways do individuals navigate and negotiate their identities within the complex matrix of socialization processes, considering factors such as ethnicity, gender, and socioeconomic status ?
Discuss in three paragraphs how a bank can decrease its labor expense to to improve its risk/return profile. give correct answer with explanation in long.
discuss the concept of resocialization and its significance in situations where individuals undergo significant life transitions or experiences that challenge their existing social identities and...

In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is

Question:

Step by Step Answer:

In a market in which the longrun industry supply c...View the full answer

Social Media Marketing A Strategic Approach

Students also viewed these Marketing questions