As long as an economic profit is available, a perfectly competitive market will continue to attract new entrants.
Answer the following statement true (T) or false (F)
True
High profits attract new suppliers, and the market supply curve shifts to the right. Prices decrease and equilibrium quantity increases until profits approach zero.
You might also like to view...
Which of the following is the BEST example of a private good?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
If a manager's expected marginal revenue exceeds their expected marginal cost, which of the following is true?
A) The expected profit from producing another unit is negative. B) The manager is maximizing expected profit. C) To maximize expected profit, the manager should decrease production. D) To maximize expected profit, the manager should increase production.
If the U.S. price level increased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves?
a. the aggregate supply curve would shift outward and the aggregate demand curve would remain unchanged b. the aggregate supply curve would shift inward and the aggregate demand curve would remain unchanged c. the aggregate demand curve would shift outward and the aggregate supply curve would remain unchanged d. the aggregate demand curve would shift inward and the aggregate supply curve would remain unchanged e. the domestic aggregate demand and supply curves would remain unchanged
Scarcity:
A. is a problem only in industrialized economies. B. is a condition measured by the quantity of goods available. C. exists everywhere because human wants can never be satisfied. D. is a problem only in poor economies.