Refer to the graphs above of perfectly competitive firms. Which of the following statements is correct?

In graph (IV) the firm is earning an economic loss. However, the firm will continue to operate in the short-run because price is greater than average variable costs. Therefore, the firm is covering average variable costs and reducing the overall burden of total fixed costs

In graph (III) the firm is enjoying positive economic profits. Therefore, firms will enter the market and compete away the positive economic profits. This is due to the fact that prices will decline from the increase in supply.

In graph (I) the firm is enjoying positive economic profits. Therefore, firms will enter the market and compete away the positive economic profits. This is due to the fact that prices will decrease from the decrease in demand.

In graph (IV) the firm is earning an economic loss. Therefore, firms will enter the market and compete away the negative economic profits. This is due to the fact that prices will decline from the increase in supply. In the long-run, the the form depicted will shut down

In graph(II) economic profits for the firm is 50. Therefore, firms will not have an incentive to enter or exit the market. However, in the long-run this form will exit the market because of an influx of new firms in the long-run.

---

 

---

The post Refer to the graphs above of perfectly competitive firms. Which of the following statements is correct?  appeared first on nursing assignment tutor.

今すぐ購入

オフホワイト メンズ インナー 下着 ソックス サイズ交換無料

■素材100% cotton■お手入れMachine wash mild■生産国Made in Italy■カラーWHITE BLACK(ホワイトブラック)■商品説明ロゴ刺繍 コットン※こちらの商品は海外のお取り寄せの商品となりますので、お届けまで10日〜2週間日前後お時間頂いております。※サイズ表は一般的な参考サイズとなっております。商品やブランドによってサイズ感が異なりますので参考としてご活用ください。※1inch=(約)2.54cm換算となっております。★商品が届いて、サイズが合わない場合はサイズ変更も行っておりますので、ご希望の方はご連絡ください。

おすすめ商品

￥10,290

￥32,400

￥10,180

￥11,480

￥10,670

￥12,310

関連製品

￥124,900￥249,800

￥26,100￥34,800

￥19,180￥23,980

￥16,450￥19,350

￥10,800￥12,710

￥27,720￥36,960

￥19,840￥24,800

￥18,660￥23,320