How do the entry and exit of firms in a purely competitive industry affect resource flows and

Question:

How do the entry and exit of firms in a purely competitive industry affect resource flows and long ‐ run profits and losses?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

See More Books

Question Posted: Apr 25, 2018 01:39 AM

See More Questions

1. As the price of copper increases, the quantity of copper produced increases because areas with relatively high ________enter the market. 2. Wolfram Elasticity. Consider the Application Wolfram...
The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal...
How do entry- and exit-value approaches differ?
In a recent self-check, the store manager had her employees compare prices on 320 different items which were picked at random for cross-check. The employees recorded the shelf price and the price...
Here is the discussion: by "Vincent SCIULLO" on the topic "Functional organizational conflict and a dysfunctional conflict and how a leader" Transformational leaders understand that conflict is...
Dynamic magneto conductivity tensor for free electrons a metal with a concentration n of free electrons of charge e is in a static magnetic field B. The electric current density in the xy plane is...
Draw and determine the C.M. positions of the following molecules. Use a periodic table of the elements for the masses of the elements (it is enough to consider the mass number). Atomic distances are...
Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Prepare...
Suppose we have a nMOSCAP made of Si. Suppose the channel doping is too strong at p = 1019 cm-3. All plots should assume the metal is on the left side. For this problem, we apply Vgs = Vth. (a) Plot...
Plastique Ltd., established in 1970, is a manufacturer of plastic products. Starting from a small, family-run business with a small core team, it has grown into a well-known household name. The...
Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries.
A 22.0 g mass of ice at 273 K is added to 136 g of H 2 O(l) at 310 K at constant pressure. Is the final state of the system ice or liquid water? Calculate S for the process. Is the process...
The Gunning Fog index is a measure of reading difficulty based on the average number of words per sentence and the percentage of words with three or more syllables. High values of the Gunning Fog...
In 2022, the top five destinations for FDI were the US, Germany, the UK, India, and China. Around 43 percent of all outbound FDI came from the US, the UK, Germany, Japan, and France. The three...
Gomez Inc. will deposit $30,000 in a 12% fund at the end of each year for 8 years beginning December 31, 2015. What amount will be in the fund immediately after the last deposit?
In May 2022, Indias commerce and industry ministry announced the highest ever FDI inflow, amounting to $83.57 billion in 202122. The key areas attracting investments were manufacturing, computer...
You are an economic advisor to Papua New Guinea, a prospective member of the Association of Southeast Asian Nations (ASEAN). The group was founded in 1967 when the Bangkok Declaration was signed by...
Assume an interest rate of 5.0 percent on real estate debt with 10 years remaining, 6.5 percent on the non-real estate debt with 3 years remaining, and an interest rate of 7.25 percent on the...
In problem, find the domain of each rational function. R(x) = x/x 3 - 8
For the following exercises, write the first four terms of the sequence. a n = 2 n 2
The Asian Development Bank reported that Myanmars GDP growth accelerated to 7.5% in 2013 from 7.3% in 2012. Growth was supported by rising investment, improved business confidence, commodity exports,...
What are labour productivity and potential GDP in 2014? The first table describes an economys labour market in 2014 and the second table describes its production function in 2014. Real wage rate...
The IMF projects that Chinas real GDP per person will be 15,040 yuan in 2015 and 16,010 yuan in 2016 and that Indias real GDP per person will be 54,085 rupees in 2015 and 56,840 rupees in 2016. By...
Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a...
1. Given a function f(t) = t- t2 over the interval 0 t. (a) Sketch a graph for the above function in the interval -3 < t <3 (b) Determine half range cosine series expansion. (c) Hence deduce that, 1...
Consider the electric potential lines below. Identify a charge distribution that could cause these lines. Where is the voltage the greatest? Draw in the path that a positive test charge would take if...

How do the entry and exit of firms in a purely competitive industry affect resource flows and

Question:

Step by Step Answer:

Entry and exit help to improve resource allocation Firms that exit an industry due to low profits ...View the full answer

Microeconomics Principles, Problems and Policies

Students also viewed these Business questions