When a perfectly competitive industry is in long run equilibrium

Asked by admin @ 29/10/2021 in Business viewed by 256 People

Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If demand for lunch plate increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at _______ price.

Answered by admin @ 29/10/2021

Answer:

Explanation:

The lunch plate industry in Oahu is a perfectly competitive industry.

This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.

The industry is currently in long-run equilibrium and has the price level at $5.

As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.

As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.

So the long-run equilibrium will be reestablished at a lower price than earlier.

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2738 persons

When a perfectly competitive industry is in long run equilibrium

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