If new firms are currently entering a perfectly competitive market, which of the following is true?
a. Existing firms are losing money.
b. Existing firms are earning positive economic profits.
c. Existing firms are just breaking even.
d. Impossible to predict.
B
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As you move up along a straight-line demand curve,
A) the price elasticity of demand decreases in size. B) the price elasticity of demand increases in size. C) total revenue always decreases. D) total revenue always increases. E) total revenue never changes.
The figure above shows the market for umbrellas in Sunville. What is the marginal social benefit that Sunville consumers receive from the 200th umbrella bought?
A) $23.33 B) $30.00 C) $26.67 D) $50.00
A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:
a. 10,000 bushels per acre per year. b. 1,200 bushels per acre per year. c. 2,000 bushels per acre per year. d. 12,000 bushels per acre per year.
If all prices fall and it is observed that Betty purchases more bananas, which of the following statements can be made?
a. Betty purchases more bananas as the price of bananas falls, ceteris paribus. b. Betty purchases more of all goods as their prices fall, ceteris paribus. c. Betty prefers bananas to all other fruits, ceteris paribus. d. There is no ceteris paribus condition in this statement. e. Betty will always buy more bananas when all prices fall, ceteris paribus.