--%>
Assignment Help - homework help

Steps by which competitive market insures increased output

Assume a competitive industry faces an increase in demand (that means the curve shifts upward).  Describe steps by which a competitive market insures increased output?  Does your answer change if the government imposes price ceiling?

If demand rise with fixed supply, price and profits increase.  The price rise induces the firms in the industry to raise output. Also, with positive profit, firms enter the industry, shifting the supply curve to the right.  Along with an effective price ceiling, profit will be lower than without the ceiling, decreasing the incentive for firms to enter the industry. Along with zero economic profit, no firms enter and there is no shift in the supply curve.

   Related Questions in Biology

  • Q : Animal phylum which contains creatures

    Which other animal phylum which contains creatures with analogous organs?

    		•
  • Q : Theory of genome and karyotype What is

    What is the basic difference between the theory of genome and karyotype?

    		•
  • Q : Erikson Stages of Personality -

    Erikson criticized the heavy emphasis given by Freud on the sexual and biological factors in the developing personality. He felt that relatively more attention should be given to the social factor. Erikson identified eight stages of life that characterize the unending development of a person. He

    		•
  • Q : Importance of the organizational

    Importance of the organizational structure The following function of the organizing and that of organization are important in several ways, which are outlined as fol

    		•
  • Q : What are gonads What do you mean by the

    What do you mean by the gonads? Specify the male and the female gonads within the humans?

    		•
  • Q : Presence of

    Considering the presence of segmentation (metameres) in their body to which other already studied phylum are arthropods proximal?

    		•
  • Q : Describe employees responsibilities

    Employees responsibilities towards company: As an employee you have many responsibilities to your employer. They are as: to perform a good day’s work to be loyal to work as part of the team to value the relationship to earn the employer’s

    		•
  • Q : Heart chambers Explain about the heart

    Explain about the heart chambers where the entrance and the exit of blood happens?

    		•
  • Q : Leadership Style-Project and Functional

    Leadership Style: As per a recent study on the leadership style of the Project and Functional Managers, the finding suggests that project managers score higher than functional managers on conscientiousness, they are more sensitive towards the situatio

    		•
  • Q : Name the wall resistance of plant cells

    Name the wall resistance of plant cells? Does this resistance facilitate or make it hard the entrance of water in the cell?

    		•