1 suppose a competitive industry in in long-run equilibrium, Ask an Expert

Economics

1. Suppose a competitive industry in in long-run equilibrium; then the price of a substitute good (in consumption) decreases. What happens in the short run?

a. The market demand curve?

b. The market supply curve?

c. Market price?

d. Market output?

e. The firm’s output?

f. The firm’s profit?

g. In the short run?

2. Anti-trust authorities at the Federal Trade Commission are reviewing your company’s recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for your company to present arguments that your firm has not increased its market power through this merger. Can you do this? How? What evidence might you bring to the hearing?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91855977

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