In the short run
a. firms can enter the industry but no firm can exit.
b. firms can exit the industry but no firm can enter.
c. firms can enter and exit the industry.
d. no firm can enter or exit the industry.
d. no firm can enter or exit the industry.
You might also like to view...
The following graph depicts demand. 
At point D, demand is:
A. unit elastic. B. perfectly price elastic. C. price elastic. D. price inelastic.
In the loanable funds market, a shortage of loanable funds occurs when the
A) supply of loanable funds exceeds demand for loanable funds. B) quantity of loanable funds supplied exceeds the quantity of loanable funds demanded. C) demand for loanable funds exceeds supply of loanable funds. D) supply of loanable funds curve shifts rightward. E) quantity of loanable funds demanded exceeds the quantity of loanable funds supplied.
Deadweight loss results from a misallocation of resources
a. True b. False Indicate whether the statement is true or false
In the graph shown, what could balance the trade deficit (reduce domestic consumption)?
A. A hurricane that damages domestic manufacturing plants B. Expansionary fiscal policy C. Lower domestic wages D. Contractionary monetary policy