--%>

Purely competitive decreasing cost industry

When a decreasing cost industry is purely competitive in that case: (1) each firm’s long-run supply curve is downward sloping. (2) each firm encounters increasing returns to scale. (3) growth of industry output yields lower per unit costs. (4) competition will be overcome by “natural monopoly.” (5) positive economic profits are assured.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : Reducing prices due to a commodity

    Which of the given would NOT be taken as predatory behaviour: (w) Rapid technological innovation. (x) Reducing prices due to a commodity surplus. (y) Duplicative products intended to absorb shelf space. (z) Introduction of close substitutes for rivals

  • Q : Transactions increment and moves in

    Transactions increase and demand prices move below supply prices while a good turns into: (w) subsidized by the government. (x) subject to a high sales tax. (y) more technologically advanced. (z) a complementary by pr

  • Q : Problem on money diagram Help me to go

    Help me to go through this problem. Refer to the given market for money diagrams. If the interest rate was at 8 percent, people would: A) sell bonds, which would cause bond prices to fall and the interest rate to fall. B) buy bonds, which would cause bond prices to ri

  • Q : Problem regarding to trade restrictions

    When the U.S. imposes quotas which restrict imports of textiles from China, this decrease the: (w) demand for textiles within the U.S. (x) supply of Chinese textiles to Europeans. (y) supply of textiles in the U.S. (z) incomes of U.S. textile makers.

    Q : Acquire substantial human capital by

    Since philosophers are hardworking and intelligent individuals who should acquire substantial human capital and advanced degrees to work like philosophers, in that case the shaded area B represents: (1) pure profit. (2) consumer surplus. (3) interest

  • Q : Occurrence of equilibrium output of firm

    Economists frequently suppose that equilibrium output for any firm arises where: (w) revenue is maximized. (x) revenue is rising. (y) profit is rising. (z) profit is maximized. Can someone explain/help me with best

  • Q : Goal of the War on Poverty Enhancing

    Enhancing the conditions of the poor was a main goal of the War on Poverty which was launched under President: (1) Franklin Delano Roosevelt. (2) Lyndon Johnson. (3) Richard Nixon. (4) Jimmy Carter. (5) Ronald Reagan.

    Q : Domestic production possibilities curve

    Refer to the following domestic production possibilities curve for Karalex. The gain to Karalex from specialization and international trade is represented by a move from: 1) A to B. 2) C to A. 3) C to D. 4) B to E.

    Q : Loss efficiency to society from

    When the equilibrium price of wheat is $50 per ton and the marginal cost of the last ton of wheat generated is $70, there is: (w) an efficiency loss to society from over-production. (x) an efficiency loss to society from underproducti

  • Q : Asymmetric Information on quality The

    The Asymmetric information on quality can outcome in: (i) Not all potential profits from the exchange being realized. (ii) Lower equilibrium prices. (iii) Purchases of unexpectedly low-quality items termed as ‘lemons’. (iv) Some transactio