In perfect competition:
a) Short run supernormal profits are competed away by firms leaving the industry.
b) Short run supernormal profits are competed away by firms entering the industry.
c) Short run supernormal profits are competed away by the government.
d) Short run supernormal profits are competed away by greater advertising.
Ans: b) Short run supernormal profits are competed away by firms entering the industry.
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Elasticity of demand Quantity Price A 4 15 B 12 6
What will be an ideal response?
In the above figure, the equilibrium exchange rate between U.S. dollars and British pounds is
A. A. B. B. C. C. D. W.
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