If perfectly competitive firms are making an economic profit, then A) new firms will enter the...
If perfectly competitive firms are making an economic profit,
then
A) new firms will enter the market.
B) the market cannot be in either a short-run or a long-run
equilibrium.
C) the market must be in long-run equilibrium but cannot be in a
short-run equilibrium.
D) the market might be in a long-run equilibrium but not a short-run equilibrium.
E) some firms will exit the market.
Homework Answers
"A"
If the firms are making an economic profit then that will attract more and more firms in the market and that will continue to come in to the point where the economic profit are reduced to zero. The answer is "A".
Add Answer to:
If perfectly competitive firms are making an economic profit,
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A) new firms will enter the...
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are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
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Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one...
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If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of...
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are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
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This is a two part question.
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