In the long run, new firms enter a perfectly competitive market when
A) normal profit is greater than zero.
B) economic profit is equal to zero.
C) normal profit is equal to zero.
D) economic profit is greater than zero.
E) the existing firms are weak because they are incurring economic losses.
D
You might also like to view...
Contractionary fiscal policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.
List some factors that might make the threat of a strike more effective
The institution that monitors and enforces trade agreements and promotes free trade is:
A. the World Bank. B. UNICEF. C. the National Alliance Trade Organization. D. the World Trade Organization.
According to 2014 data on the U.S. population, which of the following groups of teenagers (ages 16-19) had the lowest labor-force participation rate?
a. white males b. white females c. black males d. black females