What is likely to happen in the long run if the firm whose graph is displayed be

Question

What is likely to happen in the long run if the firm whose graph is displayed below operates in perfectly competitive market A) Industry output will stay the same; individual firm output will increase B) Industry output will increase; individual firm output will increase C) Industry output will increase; individual firm output will decrease D) Industry output will decrease; individual firm output will increase 6. MC ATC Output Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $30, while Jason won't tutor unless he gets $40. If the most that someone would pay for tutoring is $35, how much producer surplus is earned? a) Miranda $10; Jason $5 b) Miranda $5; Jason-$5 c) Miranda-$10; Jason-So d) Miranda = $5; Jason-So 7. 8. Can a PPF ever shrink inward? Why or why not? A) No, economic growth is always a positive value B) No, but an economy can produce at a point inside of its PPF C) Yes, if it has underutilized resources. D) Yes, if new regulations restrict a country's capacity to produce goods.

Explanation / Answer

6) ans is C. In perfectly competitive market, price=min of ATC which makes firms output to decrease and presently there is economic profit which make entry of new firms. Thus industry output will increase and firm output will decrease.

7)D. Because when 35 is paid,Jason wont teach

8)B. PPF represent the potential of resources which cant be changed but underutilisation will make production under the PPF

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.