If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning negative economic profits, the firm should anticipate ________.
A) the market supply to increase
B) the market supply to decrease
C) new firms to enter the market
D) the market equilibrium price to decrease
B) the market supply to decrease
You might also like to view...
A straight-line demand curve has an elasticity that becomes smaller as we move from left to right along the schedule.
Answer the following statement true (T) or false (F)
You acquire human capital by:
A. investing in health care. B. gaining experience in jobs. C. getting an education. D. All of these are true.
Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by
A) regulators' desire to escape blame for poor performance, leading to a perverse strategy of "bureaucratic gambling." B) regulators' incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors. C) Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans. D) politicians strong incentives to act in their own interests rather than the interests of the taxpayers.
Which of the following would cause a short-run decrease in the quantity supplied of personal computers?
A) The price of CPUs decreases. B) The price of software decreases. C) The number of PC manufacturers decreases. D) The cost of manufacturing PCs decreases.