When economic profits in a perfectly competitive industry are positive
A) new firms will be attracted to the industry, and economic profits will decline to zero.
B) the industry is in equilibrium.
C) firms will increase output to earn even higher profits.
D) firms will increase prices while they have the opportunity.
A
You might also like to view...
A shift in the demand curve will occur when
A) supply shifts. B) the price of an input used to produce the good changes. C) consumers' income changes. D) the price of the product changes.
The demand curve facing a monopolistically competitive firm is generally
a. steeper than the demand curve that would face a perfectly competitive firm in the same industry. b. less elastic than the demand curve that would face a monopoly in the same industry. c. steeper and more elastic than the demand curve that would face a perfectly competitive firm in the same industry. d. flatter than the demand curve that would face a monopoly in the same industry.
Barriers to entry might include all but which of the following?
a. Huge capital expenditures required to get started in production b. Patents c. Sole ownership of a strategic resource d. Exclusive government franchise e. Positive economic profit
The United States truly became a mass consumption society in
A. the early 1900s. B. the 1920s. C. the 1940s. D. the 1960s.