Multiple Choice
Assume that firms in a perfectly competitive market are earning economic profits.Which of the following statements describes the change in market price and output as a result of the entry of new firms into this market?
A) The market demand curve shifts to the right, causing price to rise and market output to increase.
B) The market demand curve shifts to the left, causing price to fall and market output to decrease.
C) The short-run market supply curve shifts to the right, causing price to fall and total market output to increase.
D) The short-run market supply curve shifts to the left, causing price to rise and total market output to decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q65: Figure 12-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 12-6
Q66: If a firm in a perfectly competitive
Q67: Table 12-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Table 12-1
Q68: Article Summary<br>According to the Department of Agriculture,
Q69: If productive efficiency characterizes a market<br>A)the marginal
Q71: A perfectly competitive industry achieves allocative efficiency
Q72: If total variable cost exceeds total revenue
Q73: For a perfectly competitive firm, average revenue
Q74: Letters are used to represent the terms
Q75: A perfectly competitive firm's supply curve is