Describe why there is pressure on the price to fall when P > ATC. Is there a

Question:

Describe why there is pressure on the price to fall when P > ATC. Is there a long- and short-run distinction in the answer?

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

Step by Step Answer:

Related Book For answer-question

Issues in Economics Today

ISBN: 978-1259746390

8th edition

Authors: Robert C. Guell

See More Books

Question Posted: Feb 11, 2020 09:38 AM

See More Questions

Long run competitive equilibrium exists when P = MC = SRATC = LRATC. 1. State the conditions that characterize long-run competitive equilibrium. 2. Explain what will happen if price is above or below...
When deciding on the price to bid on a contract, the most straight forward approach is to start with projected unit cost and add enough markup to make the desired profit. But what if that results in...
When the pressure p on a material increases by an amount ?p, the volume of the material will change from V to V + ?V, where ?V is negative. The bulk modulus B of the material is defined to be the...
Is the converse of the second part of Theorem 5.7 true? That is, if a function is one-to-one (and therefore has an inverse function), then must the function be strictly monotonic? If so, prove it. If...
Identify the main criticisms of accounting for financial instruments that emerged during the financial crisis. To what extent had the IASB addressed these by the end of 2011?
The odds in favour of an event A are quoted as a to b if and only if P(A) = a/(a + b). The odds against are then b to a (which is the usual way to quote odds in betting situations). (a) If an...
On April 4, 2014, Athanasios Valsamis lost his appeal to get his money back from a friend to whom he had loaned $$700,000.$ As you will read, this case underscores the consequence of failing to...
Forrest runs Y Not Flowers, Inc. (YNF), a wholesale flower distributor with stores in several major metropolitan areas of the U.S. He is considering expanding his business, but he thinks his current...
A 20 kg dog requires treatment with ketoconazole at 5 mg/kg by oral suspension. The suspension contains 100 mg/5 mL oral solution. What volume does the dog require per dose?
Murphy Delivery Service completed the following transactions during December 2018: Dec. 1 Murphy Delivery Service began operations by receiving $13,000 cash and a truck with a fair value of $9,000...
As defined in Chapter 7, gravitational potential energy is U = mgy and is positive for a body of mass m above the earths surface (which is at y = 0). But in this chapter, gravitational potential...
Describe why there is pressure on the price to fall when P < ATC. Is there a long- and short-run distinction in the answer?
Old Alabama Company purchased investments for $45,000 and plant assets for $127,000 during the current year, during which it also sold plant assets for $66,000, at a gain of $6,000. The company also...
What is meant by 'defence of due diligence'? In the workplace, who would need to be aware of the concept of due diligence?
What is not a place where due diligence might happen?
Understand the issues to be aware of when drafting an open adoption agreement. 5. Identify and describe the various types of surrogacy contracts.
how would you explain the significance and application of Residency and Family Law Act and Assignments and Preferences Act/ Fraudulent Conveyances Act when conveying interests in 'fee simple'?
You have $4,000. The current interest rates on dollar- and pound-denominated deposits for 180-day maturity are i $ =0.02 and i=0.03, respectively. The current spot exchange rate is e=$2/. Assume that...
(a) Calculate the rate of heat transfer by radiation from a car radiator at 110oC into a 50.0oC environment, if the radiator has an emissivity of 0.750 and a 1.20 - m2 surface area. (b) Is this a...
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
Under present-day tax law, community property rules are followed in allocating income between husband and wife. Is this consistent with Lucas v. Earl? Explain.
Ricardo owns a small unincorporated business. His 15-year-old daughter Jane works in the business on a part-time basis and was paid wages of $3,000 during the current year. Who is taxed on the childs...
Define the term constructive receipt. Explain its importance.
A corporation reported cash or 1 5 , 3 0 0 and total assets of 1 8 0 , 0 0 0 on its balance sheet it's common size present for cash will be?
Morty Industries, which uses a process - costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following information was taken...
The following information has been extracted from the financial statements of a company. Net income in 2 0 1 6 = $ 3 , 0 0 0 Annual depreciation in 2 0 1 6 = $ 1 , 0 0 0 Net operating working...

Describe why there is pressure on the price to fall when P > ATC. Is there a

Question:

Step by Step Answer:

we can understand this concept with the example of perfect competitive market when price is greater ...View the full answer

Issues in Economics Today

Students also viewed these Business questions