Suppose that some firms in a competitive industry are earning zero economic profits, while others are experiencing losses. All else equal, in the long run, we would expect the number of firms in the industry to
a. increase.
b. decrease.
c. remain the same.
d. We do not have enough information with which to answer this question.
b
You might also like to view...
If all firms in a market have the same LRATC curve,
a. only one of them can survive in the long run b. the lowest possible long-run price is determined by LRATC at minimum efficient scale c. the highest possible long-run price is determined by LRATC at minimum efficient scale d. minimum efficient scale must be zero e. there is no minimum efficient scale
Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm ________ output and ________ prices.
A. raises; raises B. reduces; reduces C. reduces; raises D. raises; reduces
Two nations, Alpha and Beta, can both produce steel. Alpha has a comparative advantage in the production of steel if it:
A. Can produce more steel than Beta B. Uses more steel than Beta C. Has a higher domestic opportunity cost of producing steel than Beta D. Has a lower domestic opportunity cost of producing steel than Beta
The typical developing country will not have
a. computers b. older people c. a high proportion of college graduates d. a well-developed culture e. all of the above