When firms in a perfectly competitive market are earning an economic profit, in the long run
A) no new firms will enter the market.
B) new firms will enter the market.
C) firms will exit the market.
D) the long-run average cost curve shifts downward.
E) the initial firms continue to earn an economic profit.
B
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The cross-price elasticity of demand for generic brand pasta, an inferior good, would be expected to be less than zero
Indicate whether the statement is true or false
The term "labor" for an economist includes
A) all skilled workers, but not the unskilled workers. B) all productive contributions of humankind. C) only the value of the work done by scientists. D) all employees who have high school diplomas.
Pigou buys a house for $500,000, rents it for $2,000 per month for four years, and then sells it for $600,000. What is Pigou's per-year rate of return?
A. 4.8 percent. B. 9.8 percent. C. 20 percent. D. 39.2 percent.
If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the
A. encouraged worker effect. B. discouraged worker effect. C. fallacy of composition. D. none of the options are correct.