Which of the following would be most likely if firms in a competitive price-searcher market were earning economic profit?
a. Production inefficiencies would persist until the profit was eliminated.
b. Firms would decrease their rate of output in the short run, causing a decline in profitability in the market.
c. New firms would enter the market, resulting in fewer sales by existing firms.
d. All firms in the market would continue to produce at their current levels and continue to charge the same price.
C
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The net national debt is smaller than the gross national debt because
A. some debt is held by foreigners. B. some debt is held by U.S. citizens. C. some debt is held by government agencies. D. the government does not have to pay all of the debt.
If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labor force, the endogenous variable(s) would be
A) income tax rates. B) the size of the labor force. C) both income tax rates and the size of the labor force. D) neither income tax rates nor the size of the labor force.
Suppose that labor productivity in one economy is higher than it is in some other economy. Does that mean that the first economy is using its productive resources better than the second economy? Explain
What will be an ideal response?
Adam Smith believed that a nation would produce the maximum wealth by relying on government to make public interest economic decisions
a. True b. False Indicate whether the statement is true or false