If there are short-run profits in a competitive industry, will firms enter or exit over the long run? At what point will the final equilibrium be achieved?
What will be an ideal response?
Firms will enter the industry until all firms are just making a normal profit.
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The price of one bedroom apartments in Cheyenne increased from $55,000 to $65,000 and the quantity of apartment for sale increased from 25 to 30. Using the midpoint method, the price elasticity of supply for apartments in Cheyenne is equal to
A) 0.916. B) 0.75. C) 1.09. D) 2.18. E) 0.08.
Allegiant Air holds a natural monopoly on most of the routes it serves in the United States. Allegiant Air ________ operate on the ________ portion of its demand curve when total revenue is ________
A) will always; elastic; increasing B) will usually; elastic; decreasing C) will never; elastic; increasing D) will always; inelastic; increasing E) will never; inelastic; increasing
Which of the following is NOT a subsidy in the new the federal government's new national health care program?
A) Families with incomes up to 133% of the federal poverty level are eligible for federal Medicaid coverage. B) Families with incomes up to 400% of the federal poverty level are eligible for thousands of dollars in tax subsidies per year (amounts vary with family incomes). C) Tax credits are available to businesses providing health insurance to 25 or fewer workers and paying annual salaries averaging no more than $50,000. D) A special subsidy rate of 3.8% is applied to nearly all income earnings above $200,000 for individuals or $250,000 for married couples.
Imports are the goods and services that are produced abroad and then purchased domestically
a. True b. False Indicate whether the statement is true or false