Purchase Solution

#14 Long-Run Equilibrium - Competitive markets

Not what you're looking for?

Ask Custom Question

In a competitive market with a downward sloping demand curve, a tax that increases the fixed cost of every firm will:

a) reduce the number of firms supporting long run equilibrium

b) increase the long-run equilibrium price.

c) not cause the number of firms supporting long-run equilibrium to change

d) answers a and b

e) answers b and c

Purchase this Solution

Solution Preview

The correct answer is (d). If a tax is imposed which increases the fixed ...

Purchase this Solution

Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.