Short Run Equilibrium

A perfectly competitive assiduity is initi each(prenominal)y in a short-run equilibrium in which each firms atomic morsel 18 earning zero economic profits but be direct below their minimum efficient exceed. I would wish to take up with a few definitions from our textbook. Equilibrium: The intend that exists when sum of money supplied and quantity demanded be equal. At equilibrium, in that location is no tendency for charge to change. p. 62 (Case, Fair, & Oster, 2009) longsighted run: That period of snip for which in that respect atomic number 18 no fixed factors of production: Firms can annex or decrease the home base of operation, and new firms can put lot and existing firms can exit the industry. p. 139 (Case, Fair, & Oster, 2009) Long-run average manufacture slip (LRAC): The envelope of a series of short-run compendium molds.              p. 186(Case, Fair, & Oster, 2009) Long-run competitive equilibrium: When P = SRMC = SRAC = L RAC and profits are zero.              p. 195(Case, Fair, & Oster, 2009) Long-run industry supply sheer (LRIS): A map that traces out price and total output over term as an industry expands. p. 200 p. 201 (Case, Fair, & Oster, 2009) Minimum efficient scale (MES): The smallest size at which the long-run average cost veer is at its minimum. p.

186 (Case, Fair, & Oster, 2009)   Q1:    Long-run adjustments with a perfectly competitive industry in which firms are earning positive profits. We assume that all firms in the industry are producing with the same technology of production and that severally fi rm has a long-run average cost curve that is! U-shaped. A U-shaped long-run average cost curve implies that thither are some economies of scale to be realized in the industry and that all firms ultimately begin to run into diseconomies at some scale of operation. p.193 (Case, Fair, & Oster, 2009)     When a company starts out they all have the same goal in mind, to make a product and sell it.   If club A starts up and doesnt have any competition, there is a monopoly on that product.  party A...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper