In the long run, firms will enter a perfectly competitive market if the existing firms are making:
A. a profit.
B. zero profits.
C. negative profits.
D. Any of these could be true.
Answer: A
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Schyler is able to take out a loan for $3,000 for one year at an annual interest rate of 10 percent. After calculating her return to be $200, Schyler will realize she will:
A. lose $100 overall if she takes out the loan. B. make $200 overall if she takes out the loan. C. make $100 overall if she takes out the loan. D. lose $200 overall if she takes out the loan.
A country can shift the production possibilities curve outward by ______.
a. discouraging entrepreneurial activity b. decreasing its population growth rate c. raising the standard of living d. improving and increasing its capital
Which of the following would be the best example of a final good or service?
A. a machine that GM purchased to build cars B. flour used to make pizza C. jet fuel used by United Airlines in one of its airliners D. a meal that a family makes for itself
A Balanced Budget Amendment would be
A. homocyclical. B. procyclical. C. countercyclical. D. heterocyclical.