teach this Identical firms in a perfectly competitive orange market have the usual shaped curves. The fixed cost of eachfirm increases, everything else remains unchanged. In the short run, market supplyand firm profits09A becomes more elastic; decrease.B becomes less elastic; decrease.1 of 2C elasticity stays the same; decrease.D elasticity stays the same; could increase or decrease.E elasticity stays the same; are zero.Tutorial MC QuestionsA. Market demand has increased.B. Market demand has decreased.C The cost of land used in peach production increases.D The cost of land used in peach production decreases.E. The number of firms decreases.l'orontoConsider the perfectly competitive market for peaches, with identical firms and the usual shaped cost curves.Land is a fixed cost in the long and short run. You notice that in the short-run, the prices of peaches hasstayed the same, but the Marginal Cost has decreased. What could explain this?

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Identical firms in a perfectly competitive orange market have the usual shaped curves. The fixed cost of each firm increases, everything else remains unchanged. In the short run, market supply and firm profits

Identical firms in a perfectly competitive orange market have the usual shaped curves. The fixed cost of each firm increases, everything else remains unchanged. In the short run, market supply and firm profits

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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teach this

Identical firms in a perfectly competitive orange market have the usual shaped curves. The fixed cost of each
firm increases, everything else remains unchanged. In the short run, market supply
and firm profits
09
A becomes more elastic; decrease.
B becomes less elastic; decrease.
1 of 2
C elasticity stays the same; decrease.
D elasticity stays the same; could increase or decrease.
E elasticity stays the same; are zero.
Tutorial MC Questions
A. Market demand has increased.
B. Market demand has decreased.
C The cost of land used in peach production increases.
D The cost of land used in peach production decreases.
E. The number of firms decreases.
l'oronto
Consider the perfectly competitive market for peaches, with identical firms and the usual shaped cost curves.
Land is a fixed cost in the long and short run. You notice that in the short-run, the prices of peaches has
stayed the same, but the Marginal Cost has decreased. What could explain this?

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