If the typical perfectly competitive firm is earning an economic profit in the short run, then in the long run:
a. new firms will enter.
b. market supply will decrease.
c. market price will increase.
d. each firm will earn an economic loss.
a
You might also like to view...
If the quantity supplied of money is less than the quantity demanded of money, people will ________ bonds which will cause bond prices to ________ and the nominal interest rate to ________ until the quantity demanded and quantity supplied of money are equal.
A. sell; rise; fall B. buy; fall; rise C. sell; fall; rise D. sell; fall; fall
An increase in productivity in a country will cause its currency to ________ because it can produce goods at a ________ price, everything else held constant
A) depreciate; lower B) appreciate; lower C) depreciate; higher D) appreciate; higher
Refer to the above figure. A price floor of $60 results in
A) a shortage of 100 units. B) a shortage of 200 units. C) a surplus of 100 units. D) a surplus of 200 units.
Economists refer to this pattern, the ___________________________________, which means that as a person receives more of a good, the additional or marginal utility from each additional unit of the good declines.
A. law of trade-offs B. law of diminishing marginal utility C. production possibilities frontier D. law of increasing marginal utility