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31. In a competitive industry: A) all firms will earn above-normal profits if demand is high. B) the opportunity cost of production is zero. C) profits are only attainable in the long run to those firms able to innovate at the lowest cost D) resources move across firms in such a way that the total value of production is maximized.

31. In a competitive industry: A) all firms will earn above-normal profits if demand is high. B) the opportunity cost of production is zero. C) profits are only attainable in the long run to those firms able to innovate at the lowest cost D) resources move across firms in such a way that the total value of production is maximized.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 37CTQ: Assuming that the market for cigarettes is in perfect competition, what does allocative and...
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31. In a competitive industry: A) all firms will earn above-normal profits if demand is high. B) the opportunity cost of production is zero. C) profits are only attainable in the long run to those firms able to innovate at the lowest cost D) resources move across firms in such a way that the total value of production is maximized.
Transcribed Image Text:31. In a competitive industry: A) all firms will earn above-normal profits if demand is high. B) the opportunity cost of production is zero. C) profits are only attainable in the long run to those firms able to innovate at the lowest cost D) resources move across firms in such a way that the total value of production is maximized.
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