Post a New Question

Economics

posted by .

In long-run equilibrium there will be no economic profit in a purely competitive static economy because:

1- barriers to entry will prevent profit from arising.

2-there will be no uncertainty, no innovations, and no monopoly.

3- there will be no need for professional managers and therefore no profit rewards will be needed.

4- the marginal revenue product of capital will be zero

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit?
  2. economics

    suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p a)What are the price and quantity consumed in the long run competitive equilibrium?
  3. Economic

    Please I would to know if I choose the correct answer. Which of the following characteristics does perfect competition share with monopolistic competition?
  4. Economics

    Suppose a monopolistically competitive firm’s demand is given by P = 100 – 2Q And its cost function is given by TC = 5 + 2Q a. Find the profit maximizing quantity, price, and total profit level. b. Is this a long-run or a short-run …
  5. Economics

    In long-run equilibrium there will be no economic profit in a purely competitive static economy because: A) barriers to entry will prevent profit from arising B) there will be no uncertainty, no innovations, and no monopoly C) there …
  6. econ

    2. Suppose that firms in an industry have the following cost function: C = 100 + 0.25q2, and the industry faces an inverse demand curve of P = 90 – 2Q. a. I f the industry is competitive, find the long-run equilibrium price, quantity, …
  7. Economics

    A monopolist is in long-run equilibrium and earning economic profits equal $100 million. The government imposes a lump sum tax of $100 million on the monopolist. (A limp sum tax is a tax the monopolist must pay regardless of its level …
  8. economics

    You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit?
  9. Economics

    a firm in a purely competitive industry is currently producing a 1000 unir per day at a total cost of $450. if the firm produced 800 units per day, it total cost will be $300, and it it produced 500 units per day, it total cost will …
  10. Economics

    Given P=140-0.6Q, TC1=7q1, TC2=0.6q2 the power of 2. A. Determine the short run equilibrium output of each duopoly ignoring their Independence ( with naive assumptions). B. What is the short run market price ?

More Similar Questions

Post a New Question