b consumers are boycotting local retailers whose prices are relatively higher c

B consumers are boycotting local retailers whose

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b. consumers   are   boycotting   local   retailers   whose  prices are relatively higher. c. there are diseconomies of scale in retail sales. d. there   are   diminishing   returns   to   producing   and  selling retail goods. The long-run supply curve of an industry with a constant  returns-to-scale production function and increasing factor  costs is: a. upward sloping b. horizontal. c. initially downward sloping but eventually  upward sloping.
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d. initially upward sloping but eventually  downward sloping. e. downward-sloping. The supply curve of an industry with a decreasing returns-to- scale production function and constant factor costs is: Horizontal Initially downward sloping but eventually upward  sloping Initially upward sloping but eventually downward  sloping Upward sloping Downward sloping If a firm has increasing returns to scale, then: Its supply curve is upward sloping in the short  run but maybe downward sloping in the long-run If a firm has a constant returns to scale production function,  then: Its marginal costs are increasing in the short run,  and may be increasing in the long run ** supply curve is the marginal cost curve!!! The long-run average total cost curve is always flatter than  the short-run average total cost curve, but not necessarily  horizontal   The short run supply curve is always upward sloping  regardless of whether it’s and economy or diseconomy of  scale.  This is because capital is fixed in the SR
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Chapter 14: Firms in Competitive Markets Competitive Market : a market with many buyers and sellers trading  identical products so that each buyer and seller is a price taker o (1) there are many buyers and many sellers in the market o (2) the goods offered by various sellers are largely the same o (3) firms can freely enter or exit the market o Firms have little ability to influence market prices o A firm’s goal in a competitive market is to maximize profit Price takers : buyers and sellers in competitive markets must accept the  price the market determines, therefore, are said to be price takers Market Power : if a firm is able to influence the market price of the goods it  sells Revenue : P*Q Average Revenue : total revenue/the quantity sold o For all firms, average revenue equals the price of the good Marginal Revenue : change in total revenue from the sale of each  additional unit of output o For competitive firms, marginal revenue equals the price of  the goods The demand curve faced by a firm in perfect competition is perfectly       elastic at all quantities
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