Suppose That Each of 10,000 Perfectly Competitive Firm in an Industry

question 186

Essay

Suppose that each of 10,000 perfectly competitive firm in an industry produces 1,000 units of a good and earns an economic profit when the price of the good is $10.In the long run,definitely
A) each firm increases its production above 1,000 units.
B) the number of firms is more than 10,000.
C) consumer surplus decreases.
D) producer surplus increases.
E) the number of firms is less than 10,000.

• A) each firm increases its production above 1,000 units.
• B) the number of firms is more than 10,000.
• C) consumer surplus decreases.
• D) producer surplus increases.
• E) the number of firms is less than 10,000.

Apply flexible budget formulas to determine expected costs based on planned activity levels.

Interpret the impact of activity level changes on budgeted costs.

Analyze the differences between actual and budgeted costs.

Evaluate the performance of a company using flexible budget reports.

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Definitions:

Prominent Abdomen

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Inadequate Parenting

A parenting approach that fails to provide the necessary care, support, and guidance needed for healthy child development.

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Intense, unpredictable abdominal pain or cramping often seen in infants, thought to be linked to gastrointestinal discomfort.