When firms in a purely competitive industry are earning profits that are greater than normal, the supply of the product will tend to decrease in the long run.
Answer the following statement true (T) or false (F)
False
You might also like to view...
The figure illustrates Sally's budget line and her preferences. At point(s) ________, the marginal rate of substitution is equal to the relative price
A) B B) B, C, and E C) D D) E and C
Which statement is true?
A. William Julius Wilson and Charles Murray are basically in agreement about the causes of the formation of a permanent underclass. B. The permanent underclass has more white members than black members. C. There is very little evidence to show that there is actually a permanent underclass. D. There are more poor whites than poor blacks in the United States.
Which of the following is an example of cyclical unemployment?
a. A recent college graduate still looking for her first job b. A car salesman who loses his job because of a recession c. A ski instructor who is out of work during the summer d. An economics journalist who just quit her writing job in order to begin a new career as a college professor next month e. A worker displaced from his factory job because of greater mechanization in the workplace
The average total cost curve of a natural monopoly is always
A. upward sloping. B. horizontal. C. downward sloping at all points. D. downward sloping where it crosses the market demand curve for the good.