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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.


Definitions:

Organic Product

A compound primarily made of carbon atoms obtained as a result of an organic reaction.

Reaction Structure

The arrangement and connectivity of atoms within the products and reactants of a chemical reaction.

Reaction Structure

A diagram or representation that shows how the atoms or molecules in a chemical reaction are rearranged to form products.

Organic Product

A compound containing carbon that is produced as a result of an organic chemical reaction.

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