Table 11.4.1

Refer to Table 11.4.1, which shows a perfectly competitive firm's costs when it uses its least-cost plant to produce paper. If, in the short run, the market price is $8.40 per box, what changes occur in the market in the long run?
In the long run, the market price ________ a box and the equilibrium quantity produced by each firm in the long run ________ boxes a week.

Question

Table 11.4.1

Refer to Table 11.4.1, which shows a perfectly competitive firm's costs when it uses its least-cost plant to produce paper. If, in the short run, the market price is $8.40 per box, what changes occur in the market in the long run?  
 In the long run, the market price ________ a box and the equilibrium quantity produced by each firm in the long run ________ boxes a week.

Answer

falls to $7.00; decreases to 250

Answer

rises to $10.00; remains at 350

Answer

remains at $8.40; remains at 350

Answer

rises to $12.40; increases to 450

Answer

rises to $10.00; increases to 400

Crowdly

Table 11.4.1 Refer to Table 11.4.1, which shows a perfectly competiti...

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