Explain why technological progress will, at best, only temporarily allow a perfectly competitive firm to earn an economic profit.
What will be an ideal response?
Technological progress shifts a firm's MC curve and ATC curve downward, allowing an economic profit in the short run. In the long run, however, this economic profit will attract entry into the industry, causing price to fall until zero profit is achieved.
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A) patent B) blueprint C) copyright D) trademark
The table above gives the demand schedule for snow peas. The price elasticity of demand between $6.00 and $7.00 per bushel is
A) 1.0. B) 2.0. C) 2.6. D) 5.0.
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a. True b. False Indicate whether the statement is true or false
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