QUESTION 6 1 points Saved Assume that the market for beet is perfectly competiti

Question

QUESTION 6 1 points Saved Assume that the market for beet is perfectly competitive. Beef producers are currently earning a zero econormic proft. If consumers swtch from beef to chicken, which of the tollowing is most lkely to occur? Beef producers will now incur economic losses in both the short run and the long run OBeef producers will incur economic losses in the short run. Some producers will exit the industry until those remaining are earning a zero economic proft. Beef producers will incur economic losses in the short run. Some producers will exit the industry until those remaining are earning an economic profit Beef producers will now earn economic profits in the short run and there will be no additional adjustments in the long run. 1 points Saved QUESTION 7 The shut-down point for a perfectly competitive firm is the lowest point on the ATC curve. the point at which a firm s long-fun supply curve ends the lowest point on the AVC curve Othe lowest point on the marginal cost curve 1 points QUESTION 8 oe's Butcher Shop is prodacing where MR - MC. Joe's Butcher Shop must be eaming a nero ccononic profit incuring a lows O maximizing profits

Explanation / Answer

Q6. Option 3

In short run the producers would incur economic losses and those who can sustain for some period would stay in the business and others who cannot sustain could exit.

Q7. Option 3

It is the lowest point on the AVC curve as if the firm would not be able to cover up the variable costs like salary and resources cost then it is better to exit

Q8. Option 3

In short run the profit gets maximized at MC=MR while in long run it is at where TR=TC

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