--%>

Contestable Markets

When consumers ultimately cannot distinguish one roasted chicken dinner from other, when roasted chicken dinners are produced within a constant cost industry, and when no barriers to entry or exit exist, in that case the long-run equilibrium price per generic chicken dinner will be approximately: (1) $12. (2) $10. (3) $8. (4) $6. (5) $3.

2435_Market Power and Short Run Economic Profit.png

How can I solve my Economics problem? Please suggest me the correct answer.

   Related Questions in Microeconomics

  • Q : Problem on law of demand Let think

    Let think about the law of demand. The idea that a big price for a normal good will outcome in less of the good being bought never based logically on the: (i) Income effect. (ii) Demand for the good falling since of the higher price. (iii) Law of redu

  • Q : Problem onto market circular flows In

    In output markets, the simple circular flow model, households replace their _________ for _________.Can someone help me in determining the right answer from the given options. (1) Resources | income. (2) Labor | goods. (3) Income | goods. (4) Go

  • Q : Determine present value by interest rate

    When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for price of $1,000 monthly, in that case the house has a present value of approximately: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12

  • Q : Determine short-run supply of an

    The Christmas tree industry’s short-run supply is demonstrated as: (1) curve A. (2) curve B. (3) curve E. (4) curve F. (5) curve G.

    Q : Increase of utility when marginal

    Generally, as more of a good is consumed, the point is ultimately reached where the total: (1) And marginal utility of the good increase. (2) And marginal utility of good drop. (3) Utility carries on rising however marginal utility drops. (4) Utility drops and its mar

  • Q : Profits of large corporations Can

    Can someone help me in finding out the right answer from the given options. The enormously high profits of big corporations are: (1) Incentives which attract the competition by other firms. (2) Immune to the business cycles. (3) Mainly due to the corporate manipulatio

  • Q : Short-run Demand for Labor Short-run

    Short-run demand for the labor would be LEAST affected by the: (i) Productivity of resource. (ii) Prices of substitute resources. (iii) Demand for goods generated by the resource. (iv) Fixed costs of firm. Can someone please help m

  • Q : Elastic and Inelastic demand An

    An increase in the price of goods, outcomes in an increase in expenses on it. This demand is elastic or inelastic? Answer: Inelastic since there is direct relation

  • Q : Accounting profits when economic profit

    Whenever economic profit equivalents zero, then the accounting profits: (i) Are explicit costs of the remaining in business. (ii) Will induce raised investment even when accounting costs are much low. (iii) Are too zero. (iv) Reflect normal returns on the investment t

  • Q : Determine equilibrium price and quantity

    Suppose a growth hormone is introduced that allows dairy farmers to offer 125 million more litres of milk per year at each price. a. Construct new demand and supply curves reflecting this change. Describe with words what happe