Consider an individual firm operating in a perfectly competitive market. Suppose there is an increase in industry supply caused by new firms entering the market. As a result, an individual firm that is currently earning positive profits will see its profits a. impossible to determine. b.increase. c.decrease. d.not change. Consider a perfectly competitive market. Suppose you observe that there aren't any new firms entering the industry, and the current firms are not exiting the industry. You conclude that firms in the market are a.suffering an economic loss. b.earning an accounting profit. c.breaking even. d.earning an economic profit.
Consider an individual firm operating in a perfectly competitive market. Suppose there is an increase in industry supply caused by new firms entering the market. As a result, an individual firm that is currently earning positive profits will see its profits a. impossible to determine. b.increase. c.decrease. d.not change. Consider a perfectly competitive market. Suppose you observe that there aren't any new firms entering the industry, and the current firms are not exiting the industry. You conclude that firms in the market are a.suffering an economic loss. b.earning an accounting profit. c.breaking even. d.earning an economic profit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider an individual firm operating in a perfectly competitive market. Suppose there is an increase in industry supply caused by new firms entering the market. As a result, an individual firm that is currently earning positive profits will see its profits
a. impossible to determine.
b.increase.
c.decrease.
d.not change.
Consider a perfectly competitive market. Suppose you observe that there aren't any new firms entering the industry, and the current firms are not exiting the industry. You conclude that firms in the market are
a.suffering an economic loss.
b.earning an accounting profit.
c.breaking even.
d.earning an economic profit.
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