Perfect Competition Long-Run (2 of 2)- Old Version

The video tutorial explains economic concepts in the context of perfect competition. It covers the short-run and long-run dynamics, focusing on how firms enter the market to make profits, leading to shifts in the supply curve and changes in market prices. The tutorial concludes with the concept of long-run equilibrium, where no economic profit is made, and firms have no incentive to enter or exit the market.

What is the primary focus of the initial discussion in the video?

• The role of government in markets

• The basics of profit calculation

• The impact of taxes on supply

• The concept of monopoly

In a perfectly competitive market, what happens when new firms enter?

• The supply curve shifts to the right

• The market becomes a monopoly

• The demand curve shifts to the left

• The market price increases

What is the effect on market price when the supply curve shifts to the right?

• The market price remains the same

• The market price increases

• The market price decreases

• The market price becomes unpredictable

What indicates that a market has reached long-run equilibrium?

• The demand curve is constantly shifting

• There is no economic profit being made

• Firms are exiting the market

• Firms are making significant economic profits

Why do firms stop entering or leaving the market in long-run equilibrium?

• Due to a lack of resources

• Due to high production costs

• Because of government intervention

• Because there is no economic profit