If there is a permanent increase in demand for the product of a perfectly competitive industry, the process of transition to a new long-run equilibrium will include:
a. the entry of new firms.
b. Neither the entry of new firms nor temporarily higher profits is correct.
c. temporarily higher profits.
d. Both the entry of new firms and temporarily higher profits are correct.
d
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As of 2004, the U.S., Canada, and Western Europe account for 60 percent of the world's annual consumption of goods and services while having only about 11 percent of the world's population
Indicate whether the statement is true or false
An accounting identity is
A) when the balance of payments is running a surplus or deficits. B) when the balance of trade is in surplus or deficit. C) an expression of values that are equivalent by definition. D) special drawing rights.
It has been argued that banks tended not to take full advantage of issuing notes, thereby passing up potential profits because:
a. the profit amounts were small. b. they were not the types of profits conservative bankers wanted to pursue. c. regulations and opportunity costs involved with the issuance itself limited the profits. d. All of the above are correct. e. Only a and c are correct.
Welfare benefits reduce the need to work and result in a shift in the
A. Labor supply curve to the left. B. Labor demand curve to the left. C. Labor supply curve to the right. D. Labor demand curve to the right.