Positive economic profits exist within an industry. Which of the following statements are true? A. There...
Positive economic profits exist within an industry. Which of the following statements are true? A. There is incentive for additional firms and economic resources to enter into this industry. B. Companies in the industry are earning profits and returns on investment that are above the normal level. C. Both a and b D. Neither a nor b
Homework Answers
Correct answer is option B : B. Companies in the industry are earning profits and returns on investment that are above the normal level.
Under positive economic profit situation profit = Revenue - implicit cost - explicit cost.
firm earn more than the required rate of return on the investment.
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Positive economic profits exist within an industry. Which of the
following statements are true? A. There...
Help with #17 please 17. Which of the following statements is correct? A. Economic profits encourage firms to enter...
Help with #17 please
17. Which of the following statements is correct? A. Economic profits encourage firms to enter an industry; losses encourage firms to leave. B. Economic profits encourage firms to leave an industry; profits encourage firms to leave. C. Economic losses encourage firms to enter an industry; profits encourage firms to leave. D. Economic profits and losses have no significant impact on the growth or decline of an industry.
Which of the following is TRUE of market failures? Externalities and public goods are examples of...
Which of the following is TRUE of market failures? Externalities and public goods are examples of market failure. O All of the answers given are true of market failures. O When our resources are not allocated efficiently by the market, then we have market failure. Markets characterized by monopolies, oligopolies and monopolistic competition are examples of market failure. Statement 1: If left to itself, the market will produce too little of a good if there are positive externalities. Statement 2:...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
1. Which of the following statements is false? a. Explicit costs of using market-supplied resources entail...
1. Which of the following statements is false? a. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. b. When economic profit is zero, the firm’s owners could NOT have done better putting their resources in some other industry of comparable risk. c. If economic profit is positive, accounting profit must also be positive. d. If economic profit is negative, accounting profit must also be negative. e....
28. Firms will continue to enter a competitive industry until, in the LR, a. firms...
28. Firms will continue to enter a competitive industry until, in the LR, a. firms are making a fair rate of return b. the supply curve is meaningless c. all economic profits have been competed away d. (a) and (c) above are both correct 30. When positive externalities exist in a competitive market, the competitive output will be larger than QSO. True or False? 31. One reason economists object to monopoly is a. monopolies overproduce...
If firms are making positive economic profits in the short run, then in the long run:...
If firms are making positive economic profits in the short run, then in the long run: A. firms will leave the industry B. industry output will rise and the price will rise. C. the short-run industry supply curve will shift leftward D. new firms will enter the industry
Which of the following is true of monopolistic competition? a. There is free entry and exit...
Which of the following is true of monopolistic competition? a. There is free entry and exit of firms in response to short-run profits. b. The industry comprises of very few firms. c. Firms in the industry produce homogenous products. d. The firms in the industry exhibit constant returns to scale in production e. In the long run firms earn positive economic profits.
study guide help 10) A decreasing-cost industry is characterized by which of the following? (2pts) a...
study guide help
10) A decreasing-cost industry is characterized by which of the following? (2pts) a downward-sloping long-run average cost curve a downward-sloping market demand curve. a downward-sloping long-run industry supply curve All of the above None of the above 11) A constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the price of the product? (2pts) It will increase in the short-run and then decrease in the long-run, but...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one of the following would not be expected to occur? A. The supply curve will shift to the right. B. More firms would enter the market C. The equilibrium quantity sold will fall D. The equilibrium price will fall. E. All firms’ economic profits would eventually be driven to zero at equilibrium.
Which of the following statements is (are) true for a risk averse investor? Group of answer...
Which of the following statements is (are) true for a risk averse investor? Group of answer choices Neither of the above statements are true. If two investment alternatives have equal returns, choose the one with lower risk. If two investment alternatives have equal risk, choose the one with lower return. Both of the above statements are true.
Help with #17 please
17. Which of the following statements is correct? A. Economic profits encourage firms to enter an industry; losses encourage firms to leave. B. Economic profits encourage firms to leave an industry; profits encourage firms to leave. C. Economic losses encourage firms to enter an industry; profits encourage firms to leave. D. Economic profits and losses have no significant impact on the growth or decline of an industry.
Which of the following is TRUE of market failures? Externalities and public goods are examples of market failure. O All of the answers given are true of market failures. O When our resources are not allocated efficiently by the market, then we have market failure. Markets characterized by monopolies, oligopolies and monopolistic competition are examples of market failure. Statement 1: If left to itself, the market will produce too little of a good if there are positive externalities. Statement 2:...
If firms are making positive economic profits in the short run, then in the long run: A. firms will leave the industry B. industry output will rise and the price will rise. C. the short-run industry supply curve will shift leftward D. new firms will enter the industry
Which of the following is true of monopolistic competition? a. There is free entry and exit of firms in response to short-run profits. b. The industry comprises of very few firms. c. Firms in the industry produce homogenous products. d. The firms in the industry exhibit constant returns to scale in production e. In the long run firms earn positive economic profits.
study guide help
10) A decreasing-cost industry is characterized by which of the following? (2pts) a downward-sloping long-run average cost curve a downward-sloping market demand curve. a downward-sloping long-run industry supply curve All of the above None of the above 11) A constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the price of the product? (2pts) It will increase in the short-run and then decrease in the long-run, but...
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