Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this, the firm:
should continue producing in the short run, but leave the industry in the long run if the situation persists.

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In the short run, firms may incur economic losses or earn economic profits, but in the long run they earn normal profits.
If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:
Which of the following statements is correct? A. Economic profits induce firms to enter an industry; losses encourage firms to leave.B. Economic profits induce firms to leave an industry; profits encourage firms to leave.C. Economic profits and losses have no significant impact on the growth or decline of an industry.D. Normal profits will cause an industry to expand.

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Suppose a purely competitive, increasing-cost industry is in long-run equilibrium. Now assume that a decrease in consumer demand occurs. After all resulting adjustments have been completed, the new equilibrium price
Which of the following statements is correct? A. The long-run supply curve for a purely competitive increasing-cost industry will be upsloping.B. The long-run supply curve for a purely competitive increasing-cost industry will be perfectly elastic.C. The long-run supply curve for a purely competitive industry will be less elastic than the industry"s short-run supply curve.D. The long-run supply curve for a purely competitive decreasing-cost industry will be upsloping
if 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.
Assume a purely competitive increasing-cost industry is initially in long-run equilibrium and that an increase in consumer demand occurs. After all economic adjustments have been completed product price will be:
Assume a purely competitive, increasing-cost industry is in long-run equilibrium. If a decline in demand occurs, firms will:
If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to:
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