The graphs in the figure below represent the perfectly competitive market demandand supply curves for the apple industry and demand and cost curves for a typicalfirm in the industry.Price(dollarsper pound)5Market,price10Supply ofapples20Demandfor applesPrice and cost(dollarsper pound)5Marketprice2تلا50Quantity(thousands of pounds)Refer to the figure above, which of the following statements is true?The current market price is $3 but the price will fall in the long run as a result ofa decrease in demand.10ATCD-MR3050Quantity(thousands of pounds)The current market price is $3 but the firm will be able to increase the price inthe future.The current market price is $3 but the price will increase in the future as themarket demand increases.The current market price is $3 but the price will fall in the long run as new firmsenter the market.

The perfectly competitive market refers to market where all firms are price-takers and single firm…

The graphs in the figure below represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Price (dollars per pound) Market 5 Supply of apples Price and cost (dollars per pound) 5 Market 3 MC ATC D-MR

The graphs in the figure below represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Price (dollars per pound) Market 5 Supply of apples Price and cost (dollars per pound) 5 Market 3 MC ATC D-MR

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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