Assume a Firm Is Operating in a Purely Competitive Market

question 57

Essay

Assume a firm is operating in a purely competitive market facing an upward-sloping long-run supply curve. If the industry is currently making pure economic profit what adjustment processes would take place in this market? What would happen to the industry supply curve, equilibrium quantity and equilibrium price?

---

Definitions:

Pfr

The far-red absorbing form of phytochrome, a plant photoreceptor involved in regulating plant growth and development in response to light conditions.

Pr

An abbreviated term that could stand for various things, without additional context, its specific meaning is unclear. NO.

Phytochrome

A photoreceptor protein in plants that regulates growth, development, and flowering in response to light.

Photoperiodism

The physiological response (such as flowering) of plants to variations in the length of daylight and darkness.