The key difference between supply in the short run and supply in the long run is the assumption that firms: are able to enter and exit the market in the short run. are able to enter and exit the market in the long run. will not collude in the short run. will have a total supply that is constant in the long run

The key difference between supply in the short run and supply in the long run is the assumption that firms: are able to enter and exit the market in the short run. are able to enter and exit the market in the long run. will not collude in the short run. will have a total supply that is constant in the long run

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 10MC

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When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quantity of available rental housing units falls. The future supply of rental housing units increases. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Nonprice methods of rationing emerge.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Nonprice methods of rationing emerge. The quantity of available rental housing units falls. Step by step with explanation answer.
Suppose that the demand for the product decreases. Arrange the events in the order in which they occur after demand decreases until price returns to long‑run equilibrium. Note that not all of the events need to be placed. After demand decreases firms enter price increases supply decreases firms exit price decreases supply increases Until the market returns to long‑run equilibrium price
Suppose that the demand for the product decreases. Arrange the events in the order in which they occur after demand decreases until price returns to long-run equilibrium. Note that not all of the events need to be placed. After demand decreases price decreases firms exit supply decreases price increases firms enter Until the market returns to long-run equilibrium price Answer Bank supply increases
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The quality of rental housing units falls. Black markets develop. Nonprice methods of rationing emerge. The quantity of available rental housing units falls.
The supply of a Profit maximizing firms in competitive markets is zero when the price is below the break-even price. Above this price, they supply a quantity for which the marginal cost of production is equal to the price. True False
Which of the following is true about competitive firms? A firm with fixed/sunk costs receiving a price above its average variable cost will choose to stay in the industry in the short-run despite earning losses. Produce identical goods. An individual firm is too small relative to the market to impact the price. Is willing to supply a greater quantity if there is a reduction in the firm's marginal cost. Earn zero profits in the long-run because firms are free to enter or exit the industry over the long-run. They produce up until the point where the price equals the marginal cost of production.
All markets that are not perfectly competitive have which of the following characteristics? Each firm's marginal revenue is always equal to the market price. The product that each firm sells has no close substitutes. Firms in the market have some control over price, that is, each firm faces a downward sloping demand curve. Firms will produce a level of output where marginal cost equals the minimum level of average cost.
Suppose you own a store that sells goods for $100 each and your average total cost per unit is $95 at the profit- maximizing output level, then in the long run the equilibrium price per unit will rise. more firms will enter the market. average total costs will fall. some firms will exit from the market.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. The quality of rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Black markets develop.
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