Solved

What Happens in a Perfectly Competitive Industry When Economic Profit

Question 66

Multiple Choice

What happens in a perfectly competitive industry when economic profit is greater than zero?


A) Existing firms may get larger.
B) New firms may enter the industry.
C) Firms may move along their LRAC curves to new outputs.
D) There may be pressure on prices to fall.
E) All of the above may occur.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q61: Consider the following statements when answering this

Q62: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 8.6.1 -Refer

Q63: Under what conditions will a firm's long-run

Q64: Spacely Sprockets' short-run cost curve is: <img

Q65: The table below lists the short-run costs

Q67: What do cooperative firms do if they

Q68: Marginal profit is equal to<br>A) marginal revenue

Q69: Assume the market for tortillas is perfectly

Q70: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 8.4.2 -Refer

Q71: In a constant-cost industry, an increase in