--%>
Assignment Help - homework help

Steps by which competitive market insures increased output

Assume a competitive industry faces an increase in demand (that means the curve shifts upward).  Describe steps by which a competitive market insures increased output?  Does your answer change if the government imposes price ceiling?

If demand rise with fixed supply, price and profits increase.  The price rise induces the firms in the industry to raise output. Also, with positive profit, firms enter the industry, shifting the supply curve to the right.  Along with an effective price ceiling, profit will be lower than without the ceiling, decreasing the incentive for firms to enter the industry. Along with zero economic profit, no firms enter and there is no shift in the supply curve.

   Related Questions in Biology

  • Q : Phenomenon of cows swallow of food The

    The Cows swallow their food once and then this food goes back to the mouth to be chewed once more. How this phenomenon be explained?

    		•
  • Q : Physical elements at time of origin of

    Specify the physical elements which have contributed to the great amount of the available energy over the primitive earth during the time of origin of life?

    		•
  • Q : Sodium-potassium pump-cell membrane How

    How does sodium-potassium pump which is present in the cell membrane work? And also write down the significance of this protein for cell.

    		•
  • Q : Explain Wage & Salary Administration

    Wage & Salary Administration: Wage and Salary administration is the procedure of compensating an organization's staff in accordance with accepted procedures and policy. The  significant component of a successful organization's wage and salary

    		•
  • Q : State Expatriate Employment Expatriate

    Expatriate Employment: An individual living in a country other than their own country of citizenship, frequently temporarily and for work reasons. The expatriate can as well be an individual who has relinquished citizenship in their domicile country t

    		•
  • Q : Sailors disease How vitamin C act

    How vitamin C act within the body? State the harm which is caused due to the insufficiency of vitamin C? Why this deficiency also called as “sailors' disease”?

    		•
  • Q : Define Sales Cycle Management Sales

    Sales Cycle Management: The sales cycle is the order of phases that a classical customer goes through while deciding to buy something. Like a rule, the sales cycle is illustrated from the customer's perspective. The initial phase of the sales cycle ma

    		•
  • Q : Objective of the co-ordination Q.

    Q. Prescribed the objective of the co-ordination in the short manner Economy and efficiency: co ordination aims at be gaining about the economy and efficiency in the organization. Coordination is avoiding the

    		•
  • Q : Into which groups are living beings

    Into which groups are living beings categorized?

    		•
  • Q : Relationship between enzyme cofactors

    Write down the relationship between enzyme cofactors and vitamins?

    		•