Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct?
A. The diagrams portray neither long-run nor short-run equilibrium.
B. The diagrams portray both long-run and short-run equilibrium.
C. The diagrams portray short-run equilibrium but not long-run equilibrium.
D. The diagrams portray long-run equilibrium but not short-run equilibrium.
C. The diagrams portray short-run equilibrium but not long-run equilibrium.
You might also like to view...
A natural monopoly is likely to arise when:
a. the government restricts entry through licensing b. patents provide protection of intellectual property. c. economies of scale exist over the relevant range of demand. d. a firm controls a crucial input to production.
If the Fed wants to move the economy down and to the right along the Phillips curve, what must it do?
a. Increase the rate at which the aggregate supply curve shifts upward b. Decrease the rate at which the aggregate demand curve shifts rightward c. Increase the rate at which the aggregate demand curve shifts rightward d. Increase the rate at which the aggregate demand curve shifts leftward e. Decrease the rate at which the aggregate supply curve shifts upward