In the short run in perfect competition,
a. each firm can sell whatever quantity it wishes to sell at the market price
b. the market demand curve cannot shift
c. new firms will enter the market if existing firms are earning economic profits
d. new firms will enter the market if existing firms are earning normal profits
e. existing firms will exit the market if they are suffering losses
A
You might also like to view...
Which of the following statements is accurate regarding the Building account?
Which statement best describes the current account balance in the short run?
A) Monetary expansion lowers the current account balance. B) Monetary expansion keeps the current account balance the same. C) Fiscal expansion increases the current account balance. D) Fiscal expansion keeps the current account balance the same. E) Monetary expansion increases the current account balance.
In the 1980s national savings declined as a percentage of GDP. Assuming that domestic private investment's percentage share has not declined, this situation requires, ceteris paribus,
A) net foreign investment (NX) to decrease. B) net foreign investment (NX) to increase. C) U.S. exports to decrease. D) A and C are both necessary outcomes.
Scientists have developed a bacterium they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
A. price will increase, quantity will increase B. price will decrease, quantity will decrease C. price will increase, quantity will decrease D. price will decrease, quantity will increase E. The change in equilibrium price and quantity is indeterminate.