Purely competitive firms in increasing cost industries

When purely competitive firms operate within increasing cost industries, several: (1) individual firms’ supply curves should be horizontal. (2) firms should experience decreasing returns to scale at low output levels. (3) specialized resources probably have upward-sloping supply curves. (4) firms are probable to become natural monopolies. (5) potential economies of scale are not being exploited. (6) long run fixed costs increase while market demand grows.

Hello guys I want your advice. Please recommend some views for above Economics problems.

View Complete Question

Related Questions in Microeconomics

Q : Area above price line and below

I have a problem in economics on Area above price line and below individual demand curve. Please help me in the following question. When a single price is charged for each and every unit of a good, then the area above the price line however beneath an individual&rsquo

Q : Falling probably interest rate The

The interest rate will probably fall when households decide to: (w) consume more currently, shrinking the loanable funds obtainable for business investments. (x) buy new homes in place of restoring their old ones. (y) increase the liquidity of their a

Q : Operates a profit-maximizing firm When

When this profit-maximizing firm as in illustrated graph can’t price discriminate in that case this will operate where is: (1) accounting profit is positive but economic profit is zero. (2) the demand curve facing the firm is th

Q : Estimating national income by

Describe precautions to be taken in estimating national income by expenditure technique? Answer: The following precautions are to be taken while evaluating N.I. by

Q : Slope of indifference Curve State the

State the slope of indifference Curve? Answer: Slope of indifference curve is equivalent to MRS, that is, Marginal Rate of Substitution.

Q : Competitive industry widespread

When a competitive industry experiences widespread economic profits into the short run, in that case in the long run: (w) new firms will enter and prices will fall. (x) entry barriers will be erected. (y) resource costs must fall. (z) dominant firms b

Q : Components of capital account Elucidate

Elucidate the components of capital account? Answer: It records are international transactions which occupy a resident of the domestic country changing his assets wi

Q : .. Within a graph along with output on

Within a graph along with output on the horizontal axis and whole revenue on the vertical axis, determine the shape of the total revenue curve for a perfectly competitive seller: w) U-shaped. x) inverted U-shaped. y) a horizontal line. z) a ray from the origin.

Q : Majority of surviving below the poverty

In the United States, a mainstream of those living below “the poverty line”: (1) have televisions, automobiles, main appliances, and other amenities possessed only by the wealthy [when anyone] in earlier times and nowadays, only by the wea

Q : Seller in a monopoly market structure A

A monopoly is a type of market structure in that one: (w) seller makes up the industry. (x) giant firm is a price taker. (y) barrier to entry exists. (z) giant firm is the particular buyer of resources.

Discover Q & A

Leading Solution Library

Avail More Than 1455093 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1946993
Asked

3,689

Active Tutors

1455093

Questions
Answered

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

Submit Assignment