Refer to the information provided in Figure 9.5 below to answer the question that follows. 
Figure 9.5Refer to Figure 9.5. From the diagram, existing firms in this industry make ________ economic profits, and as long as this continues, ________.
A. positive; new firms will enter the industry and existing firms will not leave it
B. negative; new firms will not enter it and existing firms will leave it
C. positive; the industry supply curve will shift to the left
D. zero; new firms will not enter it and existing firms will not leave it either
Answer: A
You might also like to view...
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 27 per day. If Atlantis produces only kayaks, it can make 18 per day
If Pacifica produces only surfboards, it can make 32 per day. If Pacifica produces only kayaks, it can make 24 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks. A) Pacifica; Atlantis B) Atlantis; Atlantis C) Atlantis; Pacifica D) No trade will occur.
Critically evaluate the following statement. "I am definitely in favor of free trade but only if it means fair trade."
What will be an ideal response?
The income elasticity of demand is:
A. the percentage change in quantity demanded divided by the percentage change in price. B. the percentage change in quantity demanded divided by the percentage change in income. C. the percentage change in income divided by the percentage change quantity demanded. D. the percentage change in price divided by the percentage change in income.
A market with few sellers, some influence over price, high barriers to entry, a differentiated product, and non-price competition is known as
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.