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Harrison owns a flower shop. Generally, when preferences for a good rise, demand for the good rises. Holding all else constant, this will result in a higher market price, which will lead to in the industry. The latter will in turn the industry, leading the price to a) positive economic profits; attract new firms into; fall b) economic losses; attract new firms into; fall c) positive economic profits; cause some firms to leave; rise further d) economic losses; cause some firms to leave; rise further

Harrison owns a flower shop. Generally, when preferences for a good rise, demand for the good rises. Holding all else constant, this will result in a higher market price, which will lead to in the industry. The latter will in turn the industry, leading the price to a) positive economic profits; attract new firms into; fall b) economic losses; attract new firms into; fall c) positive economic profits; cause some firms to leave; rise further d) economic losses; cause some firms to leave; rise further

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 9MC
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Harrison owns a flower shop. Generally, when preferences for a good rise, demand for the good rises. Holding all else constant, this will result in a higher market price, which will lead to in the industry. The latter will in turn the industry, leading the price to a) positive economic profits; attract new firms into; fall b) economic losses; attract new firms into; fall c) positive economic profits; cause some firms to leave; rise further d) economic losses; cause some firms to leave; rise further
Transcribed Image Text:Harrison owns a flower shop. Generally, when preferences for a good rise, demand for the good rises. Holding all else constant, this will result in a higher market price, which will lead to in the industry. The latter will in turn the industry, leading the price to a) positive economic profits; attract new firms into; fall b) economic losses; attract new firms into; fall c) positive economic profits; cause some firms to leave; rise further d) economic losses; cause some firms to leave; rise further
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