Q: Would a firm earning zero economic profit continue to produce, even
Would a firm earning zero economic profit continue to produce, even in the long run?
See AnswerQ: Discuss the shape of the long-run supply curve in a
Discuss the shape of the long-run supply curve in a perfectly competitive market. Suppose that a perfectly competitive market is initially at long-run equilibrium and then there is a permanent decreas...
See AnswerQ: Suppose an assistant professor of economics is earning a salary of $
Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 worth of bonds that had been earning 3 percent per year, and uses the fun...
See AnswerQ: A study analyzed a pharmaceutical firm’s costs to develop a prescription drug
A study analyzed a pharmaceutical firm’s costs to develop a prescription drug and receive government approval. An article in the Wall Street Journal describing the study noted that included in the fir...
See AnswerQ: Are imports and exports now a smaller or larger fraction of GDP
Are imports and exports now a smaller or larger fraction of GDP than they were 40 years ago?
See AnswerQ: The following questions are about long-run equilibrium in the market
The following questions are about long-run equilibrium in the market for cage-free eggs. a. As described in the chapter opener, was the market for cage-free eggs in 2015 in long run equilibrium? Brief...
See AnswerQ: A column in the New York Times notes that many economists “
A column in the New York Times notes that many economists “support Pigovian taxes because, in some sense, we are already paying them.” In what sense might consumers in a market be “paying” a Pigovian...
See AnswerQ: In panel (b) of Figure 12.9 on page
In panel (b) of Figure 12.9 on page 426, Sacha Gillette reduces her output from 40,000 to 25,000 dozen eggs when the price falls to $1.75. At this price and this output level, she is operating at a lo...
See AnswerQ: According to an article in the Wall Street Journal, rapid growth
According to an article in the Wall Street Journal, rapid growth in consumer demand for natural and organic food helped make the Whole Foods supermarket chain very profitable. But according to that sa...
See AnswerQ: A student in a principle of economics course makes the following remark
A student in a principle of economics course makes the following remark: The economic model of perfectly competitive markets is fine in theory but not very realistic. It predicts that in the long run,...
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