If perfect competitors are making profits
A. new firms will enter the industry and market price will fall.
B. new firms will enter the industry and market price will rise.
C. firms will leave the industry and market price will rise.
D. firms will leave the industry and market price will fall.
A. new firms will enter the industry and market price will fall.
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Refer to Scenario 12.2. Explain why the situation described in the scenario is neither a prisoner's dilemma nor a battle of the sexes
What will be an ideal response?
A large government faces a production possibilities frontier much like a business firm does
a. True b. False Indicate whether the statement is true or false
In a labor market, the monopsonist faces the entire ___________.
Fill in the blank(s) with the appropriate word(s).
Average total costs are minimized when:
A. marginal costs begin to increase. B. marginal costs begin to decrease. C. marginal cost is greater than average total cost. D. marginal cost equals average total cost.