Explain What Will Happen in Each of the Following Scenarios

question 101

Essay

Explain what will happen in each of the following scenarios in a long run constant cost competitive industry.
a. The market price is $50, and firms are earning positive profits.
b. The market price is $25, and firms are earning zero profits.
c. The market price is $15, and firms are earning negative profits.

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Definitions:

Cyberloafing

Describes the act of using the internet for non-work-related activities during working hours, leading to productivity loss.

Communication Medium

The channel or method through which communication occurs between sender and receiver, such as email, phone, or face-to-face interactions.

Social Media

Digital platforms that facilitate the creation and sharing of information, ideas, and other forms of expression via virtual communities and networks.

Information-Carrying Capacity

The maximum amount of information that a particular medium or channel can effectively convey to the receiver.