Multiple Choice
In an industry with free entry and exit,economic profits:
A) indicate a market failure.
B) can never occur.
C) provide incentives for a reallocation of resources out of other industries and into the one with economic profits.
D) can be sustained indefinitely.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: _ work together to guide resources to
Q25: Economic profits are:<br>A)the same as accounting profits.<br>B)equal
Q26: Barriers to entry are created by:<br>A)government regulation
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Q28: A price ceiling that is below the
Q30: If buyers and sellers are free to
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Q32: Accounting profits minus implicit costs equals:<br>A)total revenues.<br>B)economic
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