A Competitive Firm Is Producing 500 Units of Output and Its

question 238

Essay

A competitive firm is producing 500 units of output and its efficient scale is 400 units of output. Can the market in which this firm operates be in a long-run equilibrium? Briefly explain.

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Definitions:

Three-fifths Compromise

was a constitutional agreement that each slave would count as three-fifths of a person for population representation and taxation purposes.

White Supremacist

An ideology that promotes the belief that white people are superior to those of all other races, especially the black race, and should therefore dominate society.

Ku Klux Klan

A white supremacist group that emerged in the post-Civil War United States, advocating for white dominance and known for violent racist acts.

Southern Homestead Act

A United States federal law enacted in 1866 to provide land to freed African American slaves and loyal white Southerners.