Homework Answers
17. A. Economic profits encourage firms to enter an industry; losses encourage firms to leave.
Positive economic profits encourage firms to enter the industry.
Negative economic profits (losses) encourage firms to exit the industry.
Entry and exit affect industry supply and price.
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Help with #17 please 17. Which of the following statements is correct? A. Economic profits encourage firms to enter...
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
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
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
help .. please explain LEARNING OBJECTIVE: Identify the state of a firm based on information provided...
help .. please explain
LEARNING OBJECTIVE: Identify the state of a firm based on information provided on a graph. 00 Price ($) Quantity 10 15 20 25 30 35 40 For a perfectly competitive firm, a price above $20 would result in _ For a perfectly competitive firm, a price above $20 would result in o a.) a short run loss, which would encourage some firms to leave the industry O b.) the firm shutting down O c.) long run...
Which of the following statements regarding the trucking industry is correct? Question 1 options: Over the...
Which of the following statements regarding the trucking industry is correct? Question 1 options: Over the past several years, losses and exit from the industry have substantially reduced the degree of competition in the industry. The trucking industry most closely resembles an oligopoly. Even though there is a high degree of competition, firms in the trucking industry are able to sustain positive economic profits as a result of a substantial degree of product differentiation. Between 1999 and 2007, the behavior...
If firms in a perfectly competitive industry are earning an economic profit and new firms enter...
If firms in a perfectly competitive industry are earning an economic profit and new firms enter the industry, then A) the new firms must incur an economic loss. B) the existing firms' economic profit decreases. C) consumer surplus decreases. D) there must be external benefits to consumption of the good. E) Both answers A and B are correct.
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 is not true of both firms in monopolistic competition and firms in...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
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...
Please help with these questions Question 21 0.4 pts The market for candles is perfectly competitive...
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
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
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
help .. please explain
LEARNING OBJECTIVE: Identify the state of a firm based on information provided on a graph. 00 Price ($) Quantity 10 15 20 25 30 35 40 For a perfectly competitive firm, a price above $20 would result in _ For a perfectly competitive firm, a price above $20 would result in o a.) a short run loss, which would encourage some firms to leave the industry O b.) the firm shutting down O c.) long run...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
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