Purely competitive decreasing cost industry

When a decreasing cost industry is purely competitive in that case: (1) each firm’s long-run supply curve is downward sloping. (2) each firm encounters increasing returns to scale. (3) growth of industry output yields lower per unit costs. (4) competition will be overcome by “natural monopoly.” (5) positive economic profits are assured.

Hey friends please give your opinion for the problem of Economics that is given above.

View Complete Question

Related Questions in Microeconomics

Q : Purely competitive market and constant

When this firm is typical in illustrated figure of this purely competitive market and when this is a constant-cost industry, in that case the long run supply curve for the industry is a horizontal line which would go from: (1) point c

Q : Incentive to work and earn income The

The incentive to work and earn income is likely to be least powerful if an individual who faces. (w) low income tax rates. making the cost of leisure high, and who possesses important amounts of valuable human capital. (x) high effect

Q : Investment in Equilibrium Investment is

Investment is within equilibrium in all of the given cases EXCEPT while: (w) after adjusting for risk, maturity, and liquidity, all income producing assets yield identical returns. (x) all prices of assets exactly equal their respecti

Q : Set price equal to produce output

Assume that HoloIMAGine’s patents for holographic technology lapsed, as well as entry of new competitors within this market eroded the demand for HoloIMAGine technology, even though the firm retains several market power since competitors’

Q : Expected rate of return on R&D

All of the following rise the expected rate of return on R&D expenditures, except: A) patents. B) trademarks. C) imitation by others. D) trade secrets

Q : Labor Union History-AFL-CIO merger

Preceding to the AFL-CIO merger in the year1955: (i) The AFL was an alliance of the industrial unions. (ii) The CIO was alliance of the craft unions. (iii) Strikes over which the unions would symbolize workers were common. (iv) The union movement was limited to public

Q : Market period disequilibrium At the

At the price P1, this purely competitive Christmas tree industry is within: (w) long-run equilibrium. (x) short-run equilibrium. (y) market period disequilibrium. (z) short-run disequilibrium.

Q : Problem of what to produce Describe the

Describe the problem of What to produce?

Q : Positive economic loss Can someone help

Can someone help me in finding out the right answer from the given options. Sara left her high strain job at hospital as the neurosurgeon making $250,000 yearly to launch ‘Flowers-to-Go’, a new firm. Sara still feels similar quantity of stress; therefore s

Q : Reading Production Possibilities

I have a problem in economics on reading the Production Possibilities Frontiers graph. Please help me in determining the right answer from the following question. The graph below depicts the mythical country of the Sandwichia’s:

Discover Q & A

Leading Solution Library

Avail More Than 1429835 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1957548
Asked

3,689

Active Tutors

1429835

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment