The following relationship between price,average total cost,and the number of firms describes an industry in a single country.
(A)Graph the relationship between average total cost and the number of firms,as well as the relationship between price and the number of firms.
(B)Find the long-run equilibrium price and number of firms.
(C)Suppose the country opens to trade with other countries.Which line will shift and in which direction? What will happen to the long-run equilibrium price and the number of firms in the industry?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q102: When countries create a free trade area
Q107: If price is above cost, then
A)there are
Q113: As a market increases in size, average
Q116: Explain how there can be gains from
Q121: Protectionist policies tend to
A)cause domestic industries to
Q122: Suppose Canada has 400 units of labor
Q125: Does comparative advantage occur only because of
Q128: A curve showing the quantity of exports
Q135: A tax on imports that is proportional
Q138: What is a tariff?
A)A limit on the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents