Figure 12-7 The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-7.The graphs depicts a short run equilibrium.How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)

Question

Figure 12-7  The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-7.The graphs depicts a short run equilibrium.How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)

Quizplus · Accepted Answer

In a constant-cost industry, firms enter or exit the market until economic profits are zero in the long run, leading to lower profits compared to the short run where firms might earn positive economic profits.

Figure 12-7 the Graphs in Figure 12-7 Represent the Perfectly