If the market price is above the perfectly competitive firm's average total cost curve, we expect that in the long run
(A) the industry contracts as firms exit the market.
(B) the industry expands as firms exit the market.
(C) the industry contracts as firms enter the market.
(D) the industry expands as firms enter the market.
(E) the government seeks to regulate the market to ensure efficient outcomes.
Ans: (D) the industry expands as firms enter the market.
You might also like to view...
If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another
If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another. A) 20 B) 25 C) 30 D) 45
In 2012, net worth was about what percentage of total funds raised by banks?
A) 2% B) 7% C) 13% D) 35%
A predetermined variable in a simultaneous equations model is:
A. a constant. B. the error term. C. a lagged variable. D. an omitted variable.
"Positive externalities" create a case for financing education to some extent from tax revenues insofar as
What will be an ideal response?