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16 assume the current price is pa and the firm...

Question: 16 assume the current price is pa and the firm...

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16. Assume the current price is Pa and the firm belongs A. firms will exit the industry and the long-run price will B. C. D. Answer the next tea questions on the basis of the information in Figure 1 to a decreasing-cost industry. In the long run: be Ps firms will exit this industry and the long-run price will be greater than P2, but less than P firms will exit this industry and the long-run price will be greater than Ps. the number of firms wont change and price wont change 7. This firm will break even if the product price is: This firm will realize an economic profit if price is: o. This firm will produce at a loss if price is: A.Pr B.P2, С. P), D.Pa Figure 1 10. In the short run, this firm will shut down at any MC price less than: ATC 11. If this firm is in a constant-cost industry, the long AVC run equilibrium price is: 12. In the short run, what would be the price if the firm MR, MR, was indifferent to producing or shutting down? a,a a,a, a 13. Assume the current price is P4 and the firm belongs A. firms will enter the industry and the long-run price will B. C. D. Quantity to an increasing-cost industry. In the long run: firms will enter this industry and the long-run price will be less than P, but greater than Ps firms will enter this industry and the long-run price will be less than P the number of firms wont change and price wont change. 14. Assume the current price is P4 and the firm belongs A. firms will enter the industry and the long-run price will B. C. firms will enter this industry and the long-run price wil D. the number of firms wont change and price wont 15. Assume the current price is P: and the firm belongs to a decreasing-cost industry. In the long run: be Ps. firms will enter this industry and the long-run price will be less than Pa, but greater than Po be less than P change. A. B. C. to an increasing-cost industry. In the long run: firms will exit the industry and the long-run price will be P firms will exit this industry and the long-run price will be greater than P2, but less than P firms will exit this industry and the long-run price will be greater than Ps the number of firms wont change and price wont change. D.

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