estion 5 Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? the fact that wool producers are "price takers' the assumption that wool producers in the industry do not "differentiate their products the fact that the demand curve facing each wool producer is perfectly elastic There is nearly free entry into the wool industry.
estion 5 Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run? the fact that wool producers are "price takers' the assumption that wool producers in the industry do not "differentiate their products the fact that the demand curve facing each wool producer is perfectly elastic There is nearly free entry into the wool industry.
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 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...
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![uestion 5
Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?
the fact that wool producers are "price takers'
the assumption that wool producers in the industry do not 'differentiate their products
the fact that the demand curve facing each wool producer is perfectly elastic
There is nearly free entry into the wool industry.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad2c856b-27b5-415f-811d-16c5c7a8b2e4%2Fc671d958-61b6-495d-ae93-0fc5dc59753f%2Ffdi3sw8_processed.png&w=3840&q=75)
Transcribed Image Text:uestion 5
Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?
the fact that wool producers are "price takers'
the assumption that wool producers in the industry do not 'differentiate their products
the fact that the demand curve facing each wool producer is perfectly elastic
There is nearly free entry into the wool industry.
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