lectureAssignment13

lectureAssignment13 - 1 ECONOMICS 100 Lecture Assignment...

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ECONOMICS 100 Lecture Assignment #13 (Long Run Equilibrium in Perfect Competition) Source: LR11, Chapter 9, pages 216 0 end; LR10, Chapter 9, page 217 – end. Also LR 11, Chapter 12, to page 294;LR10, Chapter 12, to page 286 (we discuss monopoly in the next assignment). (This assignment draws on the data from LA#12). 1. Long Run Equilibrium a) Given the equilibrium price in the short run (from LA#12): The number of firms in the industry in the long run will (increase, decrease, remain constant) The price will (increase, decrease, remain constant) . The output of the industry will (increase, decrease, remain constant) , while output per firm will (increase, decrease, remain constant) . b) Assume this is a constant cost industry , and firms cannot build a larger or smaller plant than the initial one. Firm Industry Output per Firm (q) Price (P) Each firm’s Profits ( Π ) Quantity (Q) Number of Firms (n) The equilibrium price coincides with the per unit cost of production. c)
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lectureAssignment13 - 1 ECONOMICS 100 Lecture Assignment...

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